Fitch Downgrades 1 Distressed Class of GECMC 2005-C1

Fitch Ratings has downgraded one class and affirmed 15 classes of GE Commercial Mortgage Corporation (GECMC) commercial mortgage pass-through certificates series 2005-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect stable performance of the underlying collateral pool. While credit enhancement continues to increase for classes A-J, B and C, these classes have previously been impacted by interest shortfalls and the pool continues to be more concentrated. Fitch believes with the majority of the pool maturing over the next 12 months that there is a possibility for these classes to experience interest shortfalls again prior to repayment. According to Fitch's global criteria for rating caps, Fitch will not assign or maintain 'AAA' or 'AA' ratings if there is a high vulnerability to interest shortfalls (see 'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions', dated May 28, 2014, for more details). Interest shortfalls are currently affecting classes F through P. The downgrade to class G reflects a greater certainty of losses.

Fitch modeled losses of 5.6% of the remaining pool; expected losses on the original pool balance total 5.9%, including $62.1 million (3.7% of the original pool balance) in realized losses to date. Fitch has designated 17 loans (39.6%) as Fitch Loans of Concern, which includes both specially serviced assets (2.9%).

As of the October 2014 distribution date, the pool's aggregate principal balance has been reduced by 61.4% to $646.6 million from $1.67 billion at issuance. Per the servicer reporting, 10 loans (32.6% of the pool) are defeased, including the largest loan.

The largest contributor to expected losses is a 133,631 square foot (sf) grocery-anchored retail center in Cincinnati, OH (2.1% of the pool). The property is anchored by Remke Markets (formerly Biggs Supermarket). The loan was transferred to special servicing in May 2012 due to imminent default resulting from cash flow issues and foreclosure was completed in January 2014. The special servicer indicated that since the property has become real estate owned (REO), the property manager and leasing agent are working to stabilize the property as well as work with a structural engineer to repair cracks in the flooring. Damage estimates are yet to be determined. The property reported occupancy of 62% as of June 2014 which is consistent with prior years.

The second largest contributor to expected losses is the Lakeside Mall loan (12%), the second largest loan in the pool. The loan is secured by the in-line space and one of five anchors (Macy's Men's & Home) of a two-level 1.5 million sf regional mall located in Sterling Heights, MI within the Detroit metropolitan statistical area (MSA). Additional non-collateral anchors include JC Penney, Lord & Taylor and Sears. The servicer reported the collateral occupancy at 93% as of year-end 2013. The net operating income (NOI) debt service coverage ratio (DSCR) for 2013 was reported at 1.15x, a decline from 1.29x for YE December 2012 and 1.25x for YE December 2011. The decline is primarily due to a scheduled increase in debt service payments beginning January 2013, which was included in the January 2010 modification of the loan. The loan is sponsored by General Growth Properties.

RATING SENSITIVITIES

Rating Outlooks on classes A-5 through D are Stable due to increasing credit enhancement, defeasance, and continued paydown. The Negative Outlook on class E reflects the thin supporting tranches, as well as the concentration of upcoming loan maturities over the next 12 months. This makes the class E bond, as well as classes F and G, susceptible to further downgrades should loans not refinance or if losses exceed Fitch expectations.

Fitch downgrades the following class and assigns Recovery Estimates (REs) as indicated:

--$14.6 million class G to 'Csf' from 'CCsf', RE 0%.

Fitch affirms the following classes and assigns or revises Rating Outlooks and REs as indicated:

--$325.4 million class A-5 at 'AAAsf', Outlook Stable;

--$56.1 million class A-1A at 'AAAsf', Outlook Stable;

--$110.9 million class A-J at 'Asf', Outlook Stable;

--$41.9 million class B at 'Asf', Outlook Stable;

--$16.7 million class C at 'Asf', Outlook Stable;

--$27.2 million class D at 'BBBsf', Outlook to Stable from Negative;

--$14.6 million class E at 'BBB-sf', Outlook Negative;

--$23 million class F at 'CCCsf', RE 95%;

--$16 million class H at 'Dsf', RE 0%;

--$0 class J at 'Dsf', RE 0%;

--$0 class K at 'Dsf', RE 0%;

--$0 class L at 'Dsf', RE 0%;

--$0 class M at 'Dsf', RE 0%;

--$0 class N at 'Dsf', RE 0%;

--$0 class O at 'Dsf', RE 0%.

The class A-1, A-2, A-3, A-4 and A-AB certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the ratings on the interest-only class X-P and X-C certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=905815

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.