Fitch Affirms GMAC Commercial Mortgage Securities Series 1998-C2.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 28, 2004

GMAC Commercial Mortgage Securities Inc.'s commercial mortgage pass-through certificates, series 1998-C2, are affirmed by Fitch Ratings as follows:

-- $109.3 million class A-1 'AAA';

-- $1.4 billion class A-2 'AAA';

-- Interest Only (IO) class X 'AAA';

-- $126.5 million class B 'AAA';

-- $113.9 million class C 'AA';

-- $164.5 million class D 'BBB+';

-- $38.0 million class E 'BBB-';

-- $88.6 million class F 'BB+';

-- $44.3 million class G 'BB';

-- $19.0 million class H 'BB-';

-- $19.0 million class J 'B+';

-- $19.0 million class K 'B';

-- $25.3 million class L 'B-';

-- $19.0 million class M 'CCC'.

The $11 million class N is not rated by Fitch.

The affirmations reflect the transaction's continued stable performance. As of April 2004 distribution date the transaction paid down 14.3% to $2.17 billion from $2.53 billion at issuance.

Currently, eleven loans (3.42%) are in special servicing, with losses expected on six (1.3%). In addition, six of the specially serviced loans (1%) are 90 days delinquent. The non rated class N is sufficient, to absorb expected losses.

The largest specially serviced loan, Abbot Road Plaza (0.30%), is secured by a 169,400 square feet (sf) retail strip mall located in Lackawanna, NY. The 55,000 sf anchor store, Quality Markets, filed bankruptcy and closed their store. The center is currently 60% occupied and 90 days delinquent. The borrower is actively trying to market the vacant anchor store.

Fitch reviewed its credit assessments of the following top five loans (25.4%): OPERS Factory Outlet Portfolio, Arden Portfolio, Boykin Portfolio, Grove Property Trust and South Towne. The debt service coverage ratio (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. Based on their stable performance, four loans maintain investment grade credit assessments and one loan (Boykin Portfolio) maintains a non-investment grade credit assessment.

The OPERS Factory Outlet Portfolio (8.6%) is secured by twelve cross-collateralized and cross-defaulted factory outlet properties. The properties are located in eight states and in predominately resort areas. The weighted average occupancy for the properties has decreased to 94.3% as of year end (YE) 2003 compared to 96.3% at issuance. Despite the drop in the portfolio's overall occupancy, the DSCR as of YE 2003 increased to 1.73 times (x) compared to 1.68x at issuance.

Arden Portfolio (6.2%) is secured by 22 cross-collateralized and cross-defaulted office and industrial properties in Southern California. The gross leasable area (GLA) for the portfolio is 2.3 million square feet, which had occupancy of 100% as of YE 2003, compared to 97.3% at issuance. The YE 2003 DSCR improved to 1.89x compared to 1.32x at issuance.

The Boykin Portfolio (4.8%) originally was secured by ten cross-collateralized and cross-defaulted Doubletree Corporation flagged, full-service hotel properties. In June 2003 the borrower released four hotels and substituted in one hotel located in San Antonio, TX. On December 17, 2003 the Portland Oregon Development Commission used its power of imminent domain to take the Portland Downtown Doubletree property. The purchase price for the property was approximately $22 million. The master servicer released the property for a pay down of $16.9 million, and an additional $2.8 million of net sale proceeds were deposited into the lockbox account. The YE 2003 DSCR for the remaining six hotels was 1.37x compared to 1.62x for the ten hotels at issuance. The decline in DSCR is attributed to a decrease in occupancy throughout the portfolio.

Grove Property Trust (2.9%) is secured by seventeen cross-collateralized and cross-defaulted multifamily properties totaling 1,950 apartment and condominium units located in Connecticut, Massachusetts and Rhode Island areas. The YE 2003 DSCR was 2.84x compared to 1.42x at issuance. The properties have benefited from increased occupancy and stabilized rents since issuance.

The South Towne Mall (2.9%) is secured by 627,168 sf of a 923,793 sf regional mall located in Sandy, UT, approximately fifteen miles south of Salt Lake City. As of YE 2003 the occupancy for the collateral had increased to 96.0% compared to 87.2% at issuance. The DSCR as of YE 2003 increased to 1.77x compared to 1.31x at issuance.

Fitch applied various hypothetical stress scenarios taking into consideration all of the above concerns. Even under these stress scenarios, the resulting subordination levels were sufficient to affirm the designated classes.