NEW YORK--(BUSINESS WIRE)--
Fitch Ratings has downgraded one distressed class and upgraded one class
of General Electric Capital Assurance Company, series GFCM 2003-1
commercial mortgage pass-through certificates. A detailed list of rating
actions follows the end of the press release.
The downgrade is due to the increased likelihood of losses to the
already distressed class. The upgrade is due to sufficient credit
enhancement and stable performance of the pool.
Fitch modeled losses of 2.61% of the remaining pool; expected losses of
the original pool are at 1.3%, including 0.35% in realized losses to
As of the July 2012 distribution date, the pool's certificate balance
has paid down 63.4% to $298.5 million from $822.6 million. There are no
defeased loans within the pool. Fitch identified 27 (21.7%) Loans of
Concern, of which one (0.54%) is specially serviced. Current cumulative
interest shortfalls totaling $217,747 are affecting classes G through J.
The only specially serviced loan in the pool is collateralized by 26,356
square foot (sf) office building located in Albuquerque, NM. The loan
transferred to special servicing in February 2012 for monetary default.
The property was vacant from June 2010 until December 2011 when a new
lease with the American Red Cross for 11,620 sf was signed. The special
servicer reports that negotiations are in progress with the borrower for
a forbearance while pursuing all rights and remedies of the trust.
The largest contributor to modeled losses is a loan (0.53%) secured by a
81,900 sf warehouse building located in Rancho Cordova, CA, a submarket
of Sacramento. The property remains 29% occupied since Fitch's last
rating action with one tenant, CA Home Furnishings, which is on a
month-to-month lease. The loan has been current since issuance.
The second largest contributor to modeled losses is a loan (0.95%)
secured by a 45,529 sf retail center located in Hoover, AL, a suburb of
Birmingham. The property's performance has suffered the last several
years due to declining occupancy. The servicer reports that the
property's first-quarter occupancy and debt service coverage ratio
(DSCR) was 37% and 0.23 times (x), respectively.
Fitch downgrades the following class and assigns a Recovery Estimate
(REs) as indicated:
--$7.1 million class G to 'Csf' from 'CCsf'; RE 75%.
Fitch upgrades the following class and revises Outlook as indicated:
--$11.3 million class B to 'AAAsf' from 'AA+'; Outlook to Stable from
Fitch affirms the following classes as indicated:
--$118.7 million class A-4 at 'AAAsf'; Outlook Stable;
--$112.7 million class A-5 at 'AAAsf'; Outlook Stable;
--$13.3 million class C at 'A+sf'; Outlook Positive;
--$11.3 million class D at 'BBBsf'; Outlook Stable;
--$10.2 million class E at 'BBB-sf'; Outlook Stable;
--$12.3 million class F at 'B-sf'; Outlook Negative;
--$1.2 million class H at 'Dsf'; RE 0%;
--Class J at 'Dsf'; RE 0%.
Classes A-1, A-2 and A-3 have paid in full. Fitch has previously
withdrawn the ratings on the interest-only class X.
Additional information on Fitch's criteria is available in the Dec. 21,
2011 report, 'Surveillance Methodology for U.S. Fixed-Rate CMBS
Transactions', which is available at 'www.fitchratings.com'
under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June, 6, 2012);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions',
(Dec. 21, 2011).
Global Structured Finance Rating Criteria
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
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Fitch RatingsPrimary AnalystSean Gibbs, +1-212-908-0311Associate
DirectorFitch, Inc.One State Street PlazaNew York, NY
10004orCommittee ChairpersonMary MacNeill,
+1-212-908-0785Managing DirectororMedia RelationsSandro
Source: Fitch Ratings