Fitch Takes Various Actions on First Union 2000-C1

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has downgraded one class, upgraded one class, and affirmed three classes of First Union National Bank Commercial Mortgage Trust (FUNBC) commercial mortgage pass-through certificates series 2000-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade reflects the amount of defeased collateral, increasing credit enhancement and continued paydown. The downgrade reflects expected losses from the specially serviced asset. There are 10 loans remaining in the pool, six of which are defeased (34.7% of the pool). Fitch has designated two loans (34%) as Fitch Loans of Concern, which includes the one specially serviced asset (30.6%). Fitch modeled losses of 32.5% of the remaining pool; expected losses on the original pool balance total 3.7%, including $20.8 million (2.7% of the original pool balance) in realized losses to date.

As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 96.8% to $24.8 million from $776.3 million at issuance. Per the servicer reporting, six loans (34.7% of the pool) are defeased. Interest shortfalls are currently affecting classes M through N.

The largest contributor to expected losses is the specially-serviced asset (30.6% of the pool). The real estate owned (REO) 206,011 square foot (sf) retail center located in Decatur, IL was transferred to special servicing in January 2010 due to the borrower's request for a discounted payoff. The trust took title to the property through Deed in Lieu of Foreclosure in July 2011. The property is only 4% occupied by one tenant. One dark anchor tenant (30.2% of the net rentable area) continues to pay rent and has a lease that runs through 2018. Per the servicer, the asset is being held to allow discussions with the dark anchor. Once completed, the timing and strategy for an eventual REO sale will be determined.

RATING SENSITIVITIES

Defeased collateral fully covers class H and covers 96% of class J. These classes will remain stable at their current ratings for the remaining life of the deal as further upgrades are constrained by previous interest shortfalls. Classes K and L may be subject to further downgrades depending on the ultimate resolution of the specially serviced asset.

Fitch downgrades the following classes as indicated:

--$5.8 million class L to 'Csf' from 'CCsf', RE 5%.

Fitch upgrades the following classes as indicated:

--$3.9 million class J to 'Asf' from 'BBBsf', Outlook Stable.

Fitch affirms the following classes as indicated:

--$4.9 million class H at 'AAsf', Outlook Stable;

--$7.8 million class K at 'B-sf', Outlook Negative;

--$2.5 million class M at 'Dsf', RE 0%.

The class A-1, A-2, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the rating on the interest-only class IO certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 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' (March 31, 2015);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=982619

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.

Fitch Ratings
Primary Analyst:
Daniel Anderson, +1-312-606-2305
Associate Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
[email protected]

Source: Fitch Ratings

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