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TEXT-S&P cuts 6 GE Commercial Mortgage 2005-C1 ratings
December 19, 2012 / 6:05 PM / 5 years ago

TEXT-S&P cuts 6 GE Commercial Mortgage 2005-C1 ratings

OVERVIEW
     -- We lowered our ratings on six classes from GE Commercial Mortgage 
Corp.'s series 2005-C1, a U.S. CMBS transaction, and placed five of these 
classes on CreditWatch with negative implications.
     -- Our rating actions reflect interest shortfalls to the trust and 
significant outstanding advances that we believe are likely to be recovered by 
the master servicer in the near future related to a liquidated asset 
previously with the special servicer, as well as our preliminary analysis of 
the four assets with the special servicer. 
     -- We lowered our rating on class F to 'D (sf)' because we expect that 
the interest shortfalls will continue and accumulated interest shortfalls will 
remain outstanding for an extended period of time. 
 
NEW YORK (Standard & Poor's) Dec. 19, 2012--Standard & Poor's Ratings Services 
today lowered its ratings on six classes of commercial mortgage pass-through 
certificates from GE Commercial Mortgage Corp.'s series 2005-C1, a U.S. 
commercial mortgage-backed securities (CMBS) transaction, and placed five of 
these ratings on CreditWatch with negative implications  (see list). 

The downgrades and negative CreditWatch placements reflect interest shortfalls 
totaling $1.1 million to the trust as reflected in the Dec. 10, 2012, trustee 
remittance report. The interest shortfalls this period are primarily due to 
special servicing fee ($15,730) and the master servicer, GEMSA Loan Services 
L.P. (GEMSA), recouping $1.06 million of outstanding advances on the 
liquidated Washington Mutual Buildings asset. The asset, which liquidated on 
Aug. 6, 2012, resulted in a $47.3 million principal loss to the trust. GEMSA 
indicated to us that $3.8 million of the $5.1 million of advances remain 
outstanding. GEMSA stated that it intends to recover the remaining $3.8 
million outstanding advances over the next several months, which we believe 
will cause the trust to continue experiencing interest shortfalls over an 
extended period of time.  

The interest shortfalls this period affected all classes subordinate to and 
including class A-J. As a result, we lowered our ratings on classes A-J, B, C, 
D, and E to reflect reduced liquidity support available to these classes and 
our expectation that these classes will continue to experience interest 
shortfalls due to GEMSA recovering its advances on the liquidated Washington 
Mutual Buildings asset. Concurrently, we placed these five ratings on 
CreditWatch with negative implications to reflect the current and potential 
interest shortfalls that we believe will affect the trust in the foreseeable 
future and the potential for the interest shortfalls to increase due to the 
$3.8 million of outstanding advances left to be reimbursed. We lowered our 
rating on the class F to 'D (sf)' because it has experienced interest 
shortfalls for five consecutive months, and we expect interest shortfalls on 
this class to continue and accumulated interest shortfalls to remain 
outstanding for an extended period of time.  

As of the Dec. 10, 2012, trustee remittance report, the transaction collateral 
comprised 89 mortgage loans and one real estate owned asset. There are four 
($53.8 million, 5.6%) assets with the special servicer, C-III Asset Management 
LLC (C-III). The reported payment status of the specially serviced assets is 
as follows: one is REO ($20.1 million, 2.1%), two are in foreclosure ($18.8 
million, 2.0%), and one loan is in its grace period ($14.9 million, 1.5%). 
According to C-III, one of the four assets is expected to be returned to the 
master servicer, while foreclosure proceedings have been filed for two other 
assets. C-III also informed us that the Oak Park Office Center REO asset is 
under contract and is expected to be liquidated at above the total exposure of 
$20.3 million in the trust.   
  
Standard & Poor's will resolve the CreditWatch negative placements as more 
information concerning the recovery of advances becomes available and after we 
fully review the workout strategies and liquidation timing of the four assets 
with the special servicer. 

STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating 
relating to an asset-backed security as defined in the Rule, to include a 
description of the representations, warranties and enforcement mechanisms 
available to investors and a description of how they differ from the 
representations, warranties and enforcement mechanisms in issuances of similar 
securities. The Rule applies to in-scope securities initially rated (including 
preliminary ratings) on or after Sept. 26, 2011. 

If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this 
credit rating report is available at  
"RELATED CRITERIA AND RESEARCH
     -- GE Commercial Mortgage Corp. Series 2005-C1 Ratings Raised, Lowered, 
And Affirmed, April 9, 2012
     -- Rating U.S. CMBS In The Face Of Interest Shortfalls, published Feb. 
23, 2006
 
RATING LOWERED
 
GE Commercial Mortgage Corp.
Commercial mortgage pass-through certificates series 2005-C1

                                  Credit             Reported
                 Rating            enhancement  interest shortfalls ($)
Class    To                 From        (%)     Current     Accumulated
F        D (sf)             CCC-(sf)    3.16    101,534         518,204

RATINGS LOWERED AND PLACED ON CREDITWATCH NEGATIVE
 
GE Commercial Mortgage Corp.
Commercial mortgage pass-through certificates series 2005-C1


                                   Credit           Reported
                 Rating            enhancement  interest shortfalls ($)
Class    To                 From        (%)     Current     Accumulated
A-J      A+ (sf)/Watch Neg     AA+ (sf)   15.93  446,067        446,067
B        BBB+ (sf)/Watch Neg   A+ (sf)    11.60  169,024        169,024
C        BB+ (sf)/Watch Neg    A- (sf)     9.87  67,931         67,931
D        B+ (sf)/Watch Neg    BBB- (sf)   7.06   112,202        514,468
E        CCC- (sf)/Watch Neg   BB+ (sf)    5.54  61,746        308,728

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