First Union/BoA CMBS Classes Downgraded

Two classes of First Union National Bank--Bank of America Commercial Mortgage Trust pass-through certificates, series 2001-C1, have been downgraded by Fitch Ratings.Class O was downgraded from B to B-minus, and class P was downgraded from B-minus to CC. In addition, Fitch upgraded two classes in the transaction and affirmed the ratings on 16 other classes. "The downgrades are the result of expected losses, which will decrease the credit enhancement of classes O and P," Fitch said. The rating agency said the transaction has incurred $20.4 million in losses, and five loans are in special servicing, of which Fitch expects losses on three.