Fitch Affirms First Union National Bank 2000-C1

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has affirmed seven classes of First Union National Bank Commercial (FUNBC) Mortgage Trust's commercial mortgage pass-through certificates, series 2000-C1. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations are due to increased credit enhancement from significant paydowns and stable performance of the pool.

Fitch modeled losses of 19.2% of the remaining pool; expected losses on the original pool balance total 3.7%, including losses already incurred. The pool has experienced $15.1 million (2% of the original pool balance) in realized losses to date. Fitch has designated four loans (29.1%) as Fitch Loans of Concern, which includes two specially serviced assets (25.9%).

As of the May 2013 distribution date, the pool's aggregate principal balance has been reduced by 90.9% to $71.1 million from $776.3 million at issuance. Seven loans (22%) are currently defeased. Interest shortfalls are currently affecting classes K through N.

The largest contributor to Fitch's modeled losses is a 70,853 square foot (sf) unanchored retail property (14.7%) located in Chicago, IL. The loan transferred to the special servicer in January 2010 due to pending loan maturity. The loan sale offering memorandum was distributed in March 2013 and the projected closing date is in June 2013.

The second largest contributor to modeled losses is a specially serviced (11.2%) real estate owned (REO) 206,011 square foot (sf) retail center located in Decatur, IL. The loan 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. Largest tenants at the property include K's Merchandise Mart, Schnucks, and Office Depot.

RATING SENSITIVITIES

Fitch also performed an additional stress on the remaining performing loans. The ratings on the class F through H notes are expected to be stable as the credit enhancement remains high. Classes J through L notes may be subject to further downgrades as losses are realized.

Fitch has affirmed the following classes as indicated:

--$8.6 million class F notes at 'AAAsf'; Outlook Stable;

--$29.1 million class G notes at 'A+sf'; Outlook Stable;

--$7.8 million class H notes at 'Asf'; Outlook to Stable from Negative;

--$3.9 million class J notes at 'BBBsf'; Outlook Negative;

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

--$5.8 million class L notes at 'CCsf'; RE 10%;

--$8.2 million class M notes at 'Dsf'; RE 0%;

Class N, which is not rated by Fitch has been reduced to zero from $14.6 million at issuance due to realized losses. Classes A-1, A-2, B, C, D, and E have paid in full. Fitch has previously withdrawn the ratings of the interest-only class IO.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=792011

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