Fitch Affirms GE 2002-1

Business Wire,  Feb 20, 2008  

Tags: Fitch, General Electric Co.

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NEW YORK -- Fitch Ratings affirms General Electric Capital Commercial Mortgage Corp., series 2002-1, as follows:

--$99.6 million class A-2 at 'AAA';

--$595.2 million class A-3 at 'AAA';

--Interest-only classes X-1 and X-2 at 'AAA';

--$36.3 million class B at 'AAA';

--$22.1 million class C at 'AAA';

--$16.9 million class D at 'AAA';

--$10.4 million class E at 'AAA'.

--$13 million class F at 'AAA';

--$18.2 million class G at 'AA';

--$10.4 million class H at 'A+';

--$18.2 million class J at 'A-';

--$16.9 million class K at 'BBB';

--$6.5 million class L at 'BBB-';

--$7.8 million class M at 'BB';

--$10.4 million class N at 'B+';

--$5.2 million class O at 'B'.

Fitch does not rate the $15.6 million class P.

The rating affirmations are due to stable pool performance since Fitch's last rating action. As of the February 2008 distribution date, the pool's aggregate certificate balance has decreased 13.2% to $901.4 million from $1.04 billion at issuance. Of the original 137 loans, 131 remain in the pool, and 28 (27.2%) are defeased.

The largest loan in the pool, 15555 Lundy Parkway (5%), is a Credit Tenant Lease (CTL) loan. It is secured by a 453,281 square foot (sf) office property that is owner-occupied by the IT facility of Ford Motor Company. This loan remains current.

Fitch has identified 14 (12.5%) loans of concern, including the two specially serviced loans (3.2%) and loans with declining DSCR and/or occupancy.

The first loan of concern and specially serviced loan (2.3%) is secured by a 130,142 sf office property located in Boston, MA and is the sixth largest loan in the pool. It was transferred to the special servicer after the borrower requested debt service relief. The collateral property was subsequently sold and the assumption of the loan closed in March 2007. The new borrower has brought the loan current and is working to stabilize the property.

Fitch's second largest loan of concern (2%) is scheduled to mature in November 2008. It is secured by a 219,976 sf office property located in Houston, TX. Occupancy at the property has dropped significantly from 95% at year-end 2006 to 47% currently. Wells Fargo, the major tenant which leased 92.7% of the property and sublet some of the space, executed a new lease covering only the space the bank was actually using after its lease expiration in December 2006. Fitch will continue to monitor the performance of this loan.

The smaller specially serviced loan (0.9%) is secured by a 138-unit multifamily property located in Stillwater, OK. The loan was transferred to the special servicer in October 2007 due to payment default and the borrower subsequently filed for bankruptcy.

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.

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