Fitch Downgrades 1 & Upgrades 1 Class GMAC Commercial Mortgage 1998-C2.

NEW YORK -- Fitch Ratings downgrades GMAC commercial mortgage securities, Inc., series 1998-C2 as follows:

--$19.0 million class M to 'CC'/'DR4' from 'CCC'/'DR4'.

Fitch also upgrades the following class:

--$88.6 million class F to 'AA-' from 'A+'.

In addition, Fitch affirms the following classes:

--$1.3 billion class A-2 at 'AAA';

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

--$126.5 million class B at 'AAA';

--$113.9 million class C at 'AAA';

--$164.5 million class D at 'AAA';

--$38.0 million class E at 'AAA';

--$44.3 million class G at 'BBB+;

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

--$19.0 million class J at 'BB-';

--$19.0 million class K at 'B+';

--$25.3 million class L at 'B-'.

Class A-1 has paid in full. The $2.2 million class N is not rated by Fitch.

The downgrade is a result of an increase in Fitch expected losses on the six specially serviced loans. The upgrade is a result of defeasance and an increase subordination levels due to additional loan amortization and prepayments since Fitch's last review. A total of 67 loans (27.5%) have defeased since issuance. As of the August 2006 distribution date, the transaction's principal balance decreased 23.2% to $1.94 billion compared to $2.53 billion at issuance. To date, the pool has realized losses in the amount of $16.8 million.

Fitch expects losses on the six specially serviced loans (1.6%) to deplete the principal balance of the non-rated class N and significantly impact the principal balance of class M. The largest of these loans (0.8%) is in foreclosure and is secured by a 420-unit multifamily property in West Des Moines, IA.

The second largest specially serviced asset (0.2%) is REO and is secured by a 467-pad mobile home property in Saginaw, MI. There are 220 vacant pads at the site which do not meet current code. The property manager is working on obtaining estimates for bringing the vacant pad sites up to code.

Fitch reviewed operating statement analysis reports and other performance information provided by the master servicer. The Fitch stressed debt service coverage ratio (DSCR) for the loan is calculated based on a Fitch adjusted net cash flow (NCF) and a stressed debt service based on the current loan balance and a hypothetical mortgage constant.

Five credit assessed loans (27.2%) are in the pool. One loan, the Arden Realty Inc. loan (6.6%), has defeased since Fitch's last rating action.

The OPERS Factory Outlet Portfolio (9.1%) is secured by 12 cross-collateralized and cross defaulted outlet properties within nine centers. Occupancy remains stable at 94% as of December 2005, a 2.8% decrease from 96.7% at issuance. The year-end (YE) 2005 Fitch stressed debt service coverage ratio (DSCR) was 2.50 times (x) compared to 1.68x at issuance. The loan maintains an investment grade credit assessment.

The two remaining investment grade credit assessed loans, South Towne Center & Marketplace (3.3%) and Grove Property Trust (3.2%), have performed at or better than expected at issuance. The loans maintain investment grade credit assessments.

The Boykin Portfolio (4.9%) remains below investment grade.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.