DBRS Downgrades One Class and Confirms Three Classes of GE Commercial Mortgage Corporation, Series 2005-C1

DBRS Limited (DBRS) has today downgraded one class of Commercial Pass-Through Certificates, Series 2005-C1 (the Certificates) issued by GE Commercial Mortgage Corporation, Series 2005-C1 as follows:

-- Class E to CCC (sf) from BB (sf)

DBRS has also confirmed the ratings on the following classes:

-- Class D at A (low) (sf)
-- Class F at C (sf)
-- Class G at C (sf)

Class D has a Stable trend while Classes E, F and G have ratings which do not carry trends. Classes E, F and G also have the Interest in Arrears designation.

The rating downgrade on Class E reflects the increased expected losses to the trust regarding the ultimate resolution of the Lakeside Mall loan, which currently represents 89.3% of the current pool balance and is in special servicing. The property has experienced downward-trending net operating income, tenant sales and tenancy for several years. As a result, the value of the property has declined significantly since issuance, which is expected to negatively affect the remaining bonds in the transaction. As of the June 2017 remittance, the pool has experienced a collateral reduction of 95.5% with two of the original 127 loans outstanding and a current trust balance of $75.9 million. The Versatile Warehouse loan represents the remaining 10.7% of the pool balance and is scheduled to mature in February 2020.

The rating assigned to Class D materially deviates from the higher rating implied by the quantitative results. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative results that is a substantial component of a rating methodology. The deviations are warranted because of uncertain loan-level event risk.

DBRS has provided updated loan-level commentary and analysis for the specially serviced loan in the DBRS commercial mortgage-backed securities (CMBS) IReports platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please register or log at www.ireports.dbrs.com
Notes:
All figures are in U.S. dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The principal methodology is CMBS North American Surveillance (December 2016), which can be found on www.dbrs.com under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.