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Fitch Affirms FUNB 2001-C3

February 5, 2014

NEW YORK --(BUSINESS WIRE)-- Fitch Ratings has affirmed five classes of First Union National Bank Commercial Mortgage Trust 2001-C3, commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release. KEY RATING DRIVERS The affirmations are due to stable performance of the remaining collateral since the last rating action. Fitch modeled losses of 19.4% of the remaining pool; expected losses on the original pool balance total 4%, including $28.6 million (3.5% of the original pool balance) in realized losses to date. Fitch has designated three (53.3% of the pool) of the remaining eight loans as Fitch Loans of Concern, which includes two specially serviced assets (35.8% of the pool). As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 97.5% to $20.8 million from $818.8 million at issuance. Per the servicer reporting, one loan (20.3% of the pool) is defeased. Interest shortfalls are currently affecting classes M through P. The largest contributor to expected losses is the specially-serviced 103,665 square foot (sf) suburban office property located in Wheaton, IL , within the Chicago MSA (25.3% of the pool). The loan was transferred to special servicing in 2010 due to imminent default and matured in 2011. The subject became REO as of October 2012 . Occupancy was 58.1% as of December 2013 . The second largest contributor to expected losses is the specially-serviced 59,065 sf suburban office building located in Schaumburg, IL , within the Chicago MSA (10.5% of the pool). The loan transferred to special servicing in 2011 due to maturity default. The REO title date was in July 2013 . Occupancy was 56.6% as of December 2013 . RATING SENSITIVITY Although credit enhancement remains high relative to the rating category for classes K and L, concerns regarding pool concentration and potential losses from the specially-serviced loans and Fitch Loans of Concern remain. Any increase in modeled losses may have a greater impact on credit enhancement. Fitch affirms the following classes: -- $6.4 million class K at 'BBBsf', Outlook Stable; -- $6.1 million class L at 'BBsf', Outlook Stable; -- $4.1 million class M at 'CCCsf', RE 100%; -- $4.1 million class N at 'Dsf', RE 0%; -- $0 class O at 'Dsf', RE 0%. The class A-1, A-2, A-3, B, C, D, E, F, G, H and J, and interest-only class IO-II certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only class IO-I 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=819714 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: Martin Nunnally , +1-212-908-0871 Associate Director Fitch Ratings, Inc. One State Street Plaza New York, NY 10004 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 Source: Fitch Ratings


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