Red Mountain CMBS Class Downgraded

Class G of Red Mountain Funding LLC's commercial mortgage pass-through certificates, series 1997-1, has been downgraded from CC to C by Fitch Ratings.Fitch also affirmed the ratings on classes C, D, and E and removed them from Rating Watch Negative. In addition, Fitch affirmed the ratings on three other Red Mountain classes. The rating agency attributed the downgrade to a loss associated with the resolution of the Fairfield pool in December, and the elimination of the Fairfield-related uncertainty resulted in the removal of classes C, D, and E from the watchlist. The largest loan in the pool (27%) is secured by a health care facility in Birmingham, Ala., and Fitch said it "remains concerned" about the fact that health care properties account for 100% of the pool.