Fitch Upgrades 1 Class of GMAC 1997-C1

Fitch Ratings has upgraded one class of GMAC Commercial Mortgage Securities, Inc. (GMAC) commercial mortgage pass-through certificates series 1997-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade is due to increased credit enhancement, defeasance, and continued paydown. Fitch modeled losses of 5.6% of the remaining pool; expected losses on the original pool balance total 3.8%, including $60.9 million (3.6% of the original pool balance) in realized losses to date. Fitch has designated seven loans (39%) as Fitch Loans of Concern, which includes one specially serviced asset (5.5%).

As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 95.9% to $69.5 million from $1.7 billion at issuance. Per the servicer reporting, two loans (32.8% of the pool) are defeased. The remaining non-defeased loans mainly consist of retail (80%) and are located in secondary and tertiary markets. Interest shortfalls are currently affecting classes H and K.

RATING SENSITIVITY

The rating on class G was upgraded to 'BBBsf' with a Positive Outlook, as an upgrade is likely if performance continues to remain stable as the transaction delevers. Although the defeased collateral would be able to pay back the class in full, the defeased loans do not mature until 2019 and 2020; should additional loans become specially serviced, interest shortfalls may be possible. Given the concentration within the pool and the possibility for interest shortfalls, this rating is likely to be capped at 'A'. According to Fitch's global criteria for rating caps, Fitch will not assign or maintain 'AAAsf' or 'AAsf' ratings for notes that it believes have a high level of vulnerability to interest shortfalls or deferrals, even if permitted under the terms of the documents (for more information please see the full report titled 'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions', dated June 12, 2013, at www.fitchratings.com).

Fitch upgrades the following class:

--$22.9 million class G to 'BBBsf' from 'BBsf'; Outlook revised to Positive from Stable.

The class A-1, A-2, A-3, B, C, D, E and F certificates have paid in full. Fitch does not rate the class H and K certificates. Fitch previously withdrew the rating on the class J and interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013);

--'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (June 12, 2013).

Applicable Criteria and Related Research:

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709840

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=818918

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Fitch Ratings
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Darren Liss
Director
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Mary MacNeill
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