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TEXT-Fitch cuts 12 classes of GECMC 2006-C1
May 30, 2012 / 4:57 PM / 5 years ago

TEXT-Fitch cuts 12 classes of GECMC 2006-C1

May 30 - Fitch Ratings has downgraded 12 classes and affirmed eight classes
of GE Commercial Mortgage Corporation (GECMC) commercial mortgage pass-through
certificates series 2006-C1. The downgrades are due to realized losses that
impacted several subordinate classes in May, as well as a higher Fitch loss
expectation on the now largest specially serviced loan. A detailed list of
rating actions follows at the end of this press release.	
	
Five downgraded classes were taken to 'D', as the bonds incurred full or partial
principal write-downs in May due to the liquidation of the Beyman Multifamily
Portfolio III. The real estate owned (REO) assets were liquidated at a 37% loss
severity based on the original $82.85 million loan amount. The original crossed
loans represented the third largest concentration in the pool. The affected
classes were all previously rated 'Csf' with Recovery Estimates (REs) of 0%,
which indicates that Fitch considered defaults to those classes as imminent with
no expected recoveries.	
	
In addition, Fitch raised its loss expectation on the now largest specially
serviced loan, 33 Washington (3.9% of the pool), based on a recent appraisal.
The loan, which is backed by an approximately 430,000-square foot (sf)
multi-tenanted office building in Newark, NJ, transferred to special servicing
in November 2011 for monetary default. The property has suffered from the loss
of a major tenant and continues to be plagued by high rollover. At the start of
the year, the property was reported as just 40% leased. The borrower is
continuing leasing efforts, while the special servicer considers various
resolution strategies.	
	
Fitch modeled losses now total 8.7% of the remaining pool.	
	
Fitch downgrades the following classes and assigns or revises Rating Outlooks
and REs as indicated:	
	
--$146.8 million class A-J to 'BBsf' from 'BBB-sf'; Outlook to Negative from
Stable;	
--$36.2 million class B to 'CCCsf' from 'BBsf'; RE 85%;	
--$14.1 million class C to 'CCsf' from 'BBsf'; RE 0%;	
--$24.1 million class D to 'Csf' from 'B-sf'; RE 0%;	
--$14.1 million class E to 'Csf' from 'CCCsf'; RE 0%;	
--$14.1 million class F to 'Csf' from 'CCCsf'; RE 0%;	
--$14.1 million class G to 'Csf' from 'CCsf'; RE 0%;	
--$1.2 million class K to 'Dsf' from 'Csf'; RE 0%;	
--$0 class L to 'Dsf' from 'Csf'; RE 0%;	
--$0 class M to 'Dsf' from 'Csf'; RE 0%;	
--$0 class N to 'Dsf' from 'Csf'; RE 0%;	
--$0 class O to 'Dsf' from 'Csf'; RE 0%.	
	
Fitch affirms the following classes as indicated:	
	
--$37.1 million class A-2 at 'AAAsf'; Outlook Stable;	
--$47.2 million class A-3 at 'AAAsf'; Outlook Stable;	
--$35.3 million class A-AB at 'AAAsf'; Outlook Stable;	
--$620.1 million class A-4 at 'AAAsf'; Outlook Stable;	
--$206.8 million class A-1A at 'AAAsf'; Outlook Stable;	
--$160.9 million class A-M at 'AAAsf'; Outlook Stable;	
--$14.1 million class H at 'Csf'; RE 0%;	
--$6 million class J at 'Csf'; RE 0%.	
	
The class A-1 certificates have paid in full. Fitch does not rate the class P
certificates. Fitch previously withdrew the rating on the interest-only class
X-W certificates.	
	
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions
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' (Aug. 4, 2011);	
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21,
2011).	
	
Applicable Criteria and Related Research:	
Global Structured Finance Rating Criteria	
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

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