Fitch Affirms First Union Bank - Bank of America, N.A. Commercial Mortgage Trust 2001-C1

NEW YORK--()--Fitch Ratings has affirmed eight classes of First Union Bank - Bank of America, N.A. Commercial Mortgage Trust, series 2001-C1 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch's affirmations are the result of continued stable performance of the two remaining loans within the collateral pool. As of the March 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.2% to $24 million from $1.31 billion at issuance. Interest shortfalls are currently affecting classes H through Q.

RATING SENSITIVITY

No rating changes are expected as at this time, the pool is not experiencing any principal amortization; principal payment to the class H, the most senior class, will likely derive from liquidation proceeds of the one REO property remaining.

The largest remaining loan is a $13.3 million loan (55.4% of the pool) that is secured by a 280-unit multifamily project located in Las Vegas, NV. The loan was transferred to the special servicer in January 2011 and the borrower filed for bankruptcy protection in October 2011. The debtor's plan of reorganization was approved in December 2012 which extended the term on the secured debt through June 2022 and reduced the interest rate from 8.1% to 4.3%. Payments are interest-only for the first 5 years then reverting to principal and interest starting in year 6. Since the modification was completed, the loan has performed as agreed and was returned to master servicer in December 2012. As of year-end 2013, the property was 90% occupied. The 2013 net operating income debt service coverage ratio (NOI DSCR) was 1.71x, an increase from 2012's NOI DSCR (1.01x) as a result of the property's improvement as well as the modification of payment terms.

The second largest loan and the largest contributor to expected losses is a specially-serviced industrial loan (44.6% of the pool) which is secured by an 836k SF industrial complex comprised of 10 warehouse buildings located in Greenville, NC. The loan transferred to special servicing in December 2010 and foreclosure was completed in August 2012. As of year-end 2013 the properties were 51% occupied and reported a net operating income of $846k. It is anticipated that the property will be marketed for sale in 2014.

Fitch affirms the following classes as indicated:

--$3.1 million class H at 'CCCsf', RE 100%;

--$19.6 million class J at 'Csf', RE 75%.

--$1.3 million 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%;

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

The class A-1, A-2, A-2F, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class Q certificates. Fitch previously withdrew the ratings on the interest-only class IO-I, IO-II and IO-III 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' (May 24, 2013);

--'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=708661

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=825333

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.

Contacts

Fitch Ratings
Primary Analyst:
Britt Johnson, +1-312-606-2341
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Britt Johnson, +1-312-606-2341
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com