S&P Lowers GMAC Commercial Mortgage Corp. Rankings to Above Average

NEW YORK, NY -- (May 3, 2002) -- Standard & Poor's yesterday lowered its rankings on GMAC Commercial Mortgage Corp. (GMACCM) to Above Average from Strong as a Commercial Mortgage Primary and Master Servicer. The outlook for both rankings is Stable. 

The lowered rankings are based on Standard & Poor's reduced confidence in GMACCM's primary and master servicing abilities, particularly with respect to its portfolio management and surveillance functions during the past year. The company has pursued a path of rapid portfolio growth and has outpaced much of its competition in this regard. 

However, the organization has demonstrated strain and difficulty during the past year in maintaining the highest level of quality for its portfolio management function and in meeting Standard & Poor's demands for timely and accurate portfolio surveillance information. In particular, GMACCM's servicing group has to strengthen and reintegrate its CMBS portfolio surveillance function, which another GMACCM division outside of the servicing group controlled until May 1, 2002. 

In an effort to improve third-party investor and rating agency communications, GMACCM has stated that it is working to enhance staffing depth and expertise levels in the critical areas of client relationship and portfolio asset management. As of year-end 2001, GMACCM's domestic commercial mortgage servicing volume surpassed $100 billion and its portfolio growth plan remains aggressive. As GMACCM works to achieve this growth, the company must prove that it can in fact improve the quality of its operations to the highest levels and then sustain it to deliver customized, accurate, and timely service to rating agencies and CMBS investors.

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