Correction: Fitch Upgrades GS Mortgage Securities Corp. II's 1998-C1 Class C.

CHICAGO -- (This is an amended version of a press release issued earlier today and contains a revised rating for class G of 'B', not 'BB'.)

Fitch Ratings upgrades GS Mortgage Securities Corp. II's commercial mortgage pass-through certificates, series 1998-C1, as follows:

-- $102.4 million class C to 'AA-' from 'A+'.

In addition, Fitch affirms the following classes:

-- $65.7 million class A-1 'AAA';

-- $436.0 million class A-2 'AAA';

-- $544.4 million class A-3 'AAA';

-- Interest-only class X 'AAA';

-- $102.4 million class B 'AAA';

-- $107.0 million class D 'BBB';

-- $32.6 million class E 'BBB-';

-- $23.3 million class G 'B';

-- $55.8 million class H 'CCC'.

The $23.3 million class J remains at 'C'. Fitch does not rate classes F and K.

The upgrade reflects an increase in subordination levels due to loan amortization and payoffs.

Currently, 16 loans (5.2%) are specially serviced by GMAC Commercial Mortgage Corp. (GMAC). Fitch expects 14 specially serviced loans (4%) to result in losses. The largest loan in special servicing (1.3%) is secured by an outlet mall located in Bristol, WI. The loan was transferred to special servicing in June 2003 due to vacancy issues and converted to real estate owned (REO) in January 2004. The property is currently 50% occupied and listed for sale. The second largest loan in special servicing is Sequoia Plaza (0.8%), which is secured by a retail center located in Visalia, CA. The loan is expected to pay off shortly with minor losses.

As of the June 2004 distribution date, the aggregate collateral balance has been reduced by 14.8% to $1.59 billion from $1.86 billion at issuance. To date, the transaction has realized losses in the amount of $27.9 million.

GMAC, the master servicer, collected year-end (YE) 2003 financials for 82% of the pool balance. According to this information, the YE 2003 weighted average debt service coverage ratio (DSCR) is 1.61 times (x), compared with 1.51x as of YE 2002 and 1.52x at issuance for the same loans.

Fitch reviewed the credit assessments of the Americold loan (8.3%) and the Four Winds Portfolio (1.8%). The DSCR for each loan is calculated using servicer-provided net operating income less required reserves divided by debt service payments based on the current balance using a Fitch-stressed refinance constant.

The Americold loan is secured by 28 cold-storage warehouses totaling 6.2 million square feet. Net cash flow (NCF) increased slightly as of YE 2003 from YE 2002. The DSCR for the YE 2003 is stable at 1.58x, which is flat compared with YE 2002.

The Four Winds Portfolio comprises two cross-collateralized and cross-defaulted loans on two psychiatric facilities totaling 263 beds: one is in Katonah, NY (175 beds) and the other is in Saratoga Springs, NY (88 beds). The YE 2003 DSCR for the portfolio increased to 1.85x from 1.69x for YE 2002. As of December 2003, the occupancy for both facilities was approximately 95%, up from 92% at last review. Although the performance of this loan has improved, the loan maintains a below investment-grade credit assessment.