Fitch Downgrades 2 Classes of GE Capital Series 2001-2; Assigns Outlooks.
--$7.5 million class K to 'BB-' from 'BB+'; Outlook Negative;
-$12.5 million class L to 'CCC/RR1' from 'B'.
Additionally, Fitch affirms the ratings and assigns Rating Outlooks to the following classes:
--$11.6 million class A-2 at 'AAA'; Outlook Stable;
--$35.5 million class A-3 at 'AAA'; Outlook Stable;
--$519.5 million class A-4 at 'AAA'; Outlook Stable;
--$40.1 million class B at 'AAA'; Outlook Stable;
--$45.1 million class C at 'AAA'; Outlook Stable;
--Interest-only classes X-1 and X-2 at 'AAA'; Outlook Stable;
--$12.5 million class D at 'AAA'; Outlook Stable;
--$10 million class E at 'AAA'; Outlook Stable;
--$18.8 million class F at 'AA+'. Outlook Stable;
--$11.3 million class G at 'AA-'; Outlook Stable;
--$21.3 million class H at 'A-'; Outlook Stable;
--$18.8 million class I at 'BBB'; Outlook Negative;
--$5 million class J at 'BBB-'; Outlook Negative.
Fitch does not rate the $7.5 million class M and the $5.7 million class N. Class A-1 has been paid in full.
The downgrades are due to the expected losses from two loans (2%) which transferred to special servicing since Fitch's last rating action. The loans are secured by apartment complexes in Atlanta, GA and share a common sponsor. The properties have experienced a decline in performance due to the economic downturn. The special servicer is pursuing foreclosure. Fitch is also concerned about an additional loan (0.7%) in the pool with the same sponsor and considers it possible that this additional loan will transfer to special servicing as well.
As of the March 2009 distribution date, the pool's aggregate certificate balance has decreased 23.7% to $765.7 million from $1,002.9 million at issuance. In total, 29 loans (27%) have defeased. Two non-defeased loans (2.3%) mature in 2010 and the majority of the remaining non-defeased loans (63.5%) mature in 2011.
There is one shadow rated loan in the pool which is also the pool's largest loan (5.5%). It is secured by Holiday Inn West 57th Street, a 596-room full service hotel located in New York, NY. As of year-end 2007, the most recent data available, Occupancy, RevPAR and ADR were 89.2%, $205.99 and $183.74, respectively. The loan retains its investment grade shadow rating.
Fitch has identified 11 loans (10.13%) as Fitch Loans of Concern inclusive of the specially serviced loans. The largest Fitch Loan of Concern (1.9%) is secured by an apartment complex in Athens, GA which is suffering from a decline in occupancy and increased expenses. The second largest Loan of Concern (1.37%) is secured by an office property located in Santa Monica, CA which is 79.3% occupied and has been struggling with a decline in occupancy since 2006. The remaining Loans of Concern generally have experienced declines in performance or have sponsorship issues. These concerns are reflected in the Negative Outlooks.
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|Date:||Apr 9, 2009|
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