Fitch Ratings Upgrades GMAC Series 1998-C2 Classes B & C.

Business Editors

CHICAGO--(BUSINESS WIRE)--Oct. 1, 2003

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

-- $126.5 million class B to 'AAA' from 'AA+';

-- $113.9 million class C to 'AA' from 'A+'.

In addition, Fitch affirms the following classes:

-- $171.1 million class A-1 'AAA';

-- $1.3695 billion class A-2 'AAA';

-- Interest-only class X 'AAA';

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

-- $38 million class E 'BBB-';

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

-- $44.3 million class G 'BB';

-- $19 million class H 'BB-';

-- $19 million class J 'B+';

-- $19 million class K 'B';

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

-- $19 million class M 'CCC'.

The $19 million class N certificates are not rated by Fitch.

The upgrades to classes B and C reflect increases in subordination levels due to loan amortization and payoffs.

Currently, fifteen loans (3.2%) are in special servicing. The largest specially serviced loan, Alternative Living Services, is secured by five health care properties in California, Kansas and Colorado. The properties' operator, controller, owner and/or guarantor, Alterra Healthcare Corporation, filed for bankruptcy protection in January 2003. The next largest specially serviced loan, Greenwood Inn, is secured by a hotel property in Beaverton, OR and is currently 90 days delinquent. The loan is cross-collateralized and cross-defaulted with Greenwood Gardens Office Building, also located in Beaverton, OR. The special servicer has placed receivers at both properties. Twenty-three loans (5.2%) reported year-end (YE) 2002 debt service coverage ratios (DSCRs) below 1.00x.

As of the September 2003 distribution date, the transaction's aggregate principal balance has decreased 11.6%, to $2.2 billion from $2.5 billion at closing. Class L suffered an interest shortfall in September 2003 due to the recovery of advances on the modified Hamburg Plaza Loan after the second default and transfer to special servicing. The interest shortfall to class L is expected to be repaid in full in October 2003.

GMAC Commercial Mortgage Corp, the master servicer, collected YE 2002 financials for 95% of the pool balance. Based on the information provided the resulting YE 2002 weighted average DSCR remains strong at 1.78 times (x), compared to 1.89x as of YE 2001 and 1.65x at issuance for the same loans.

Fitch reviewed the credit assessments of the top five loans (25.6%). 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. Based on their stable performance, four loans maintain investment grade credit assessments and one loan maintains a non-investment grade credit assessment.

The OPERS Portfolio (8.4%) consists of 12 retail outlet centers. The total portfolio occupancy as of YE 2002 is 94.6%, which is slightly lower than the 97% occupancy at issuance. The YE 2002 Fitch stressed DSCR is 2.32x.

The Arden Portfolio (6.1%) is comprised of 15 office and 7 industrial properties totaling 2.2 million square feet located in California. Occupancy as of March 31, 2003 is 100%, and the YE 2002 Fitch stressed DSCR is 1.93x.

The Boykin Portfolio (5.5%) consists of ten full service Doubletree hotels in various locations. The total portfolio occupancy as of Dec. 31, 2002 is 65.2%, down slightly from 66.2% at Dec. 31, 2001 and 69% at issuance. The YE 2002 Fitch stressed DSCR is 1.15x.

The South Towne Mall (2.8%) is located in Sandy, UT, a suburb of Salt Lake City, and consists of a regional mall and a power center. The mall anchors are Dillard's, JC Penney, Meier and Frank, and Mervyn's. The YE 2002 Fitch stressed DSCR is 1.56x.

The Grove Property Trust portfolio (2.8%) consists of seventeen multifamily properties dispersed throughout Connecticut, Massachusetts, and Rhode Island. The reported YE 2002 occupancy is 97%, down slightly from 99% for YE 2001. The YE 2002 Fitch stressed DSCR is 2.14x.

Fitch applied various stress scenarios including assumed losses on some of the loans of concern. Even under these stress scenarios subordination levels remain sufficient to justify the rating actions. Fitch will continue to monitor this transaction for any change in performance.