OREANDA-NEWS. Fitch Ratings has downgraded one class, upgraded one class, and affirmed three classes of First Union National Bank Commercial Mortgage Trust (FUNBC) commercial mortgage pass-through certificates series 2000-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade reflects the amount of defeased collateral, increasing credit enhancement and continued paydown. The downgrade reflects expected losses from the specially serviced asset. There are 10 loans remaining in the pool, six of which are defeased (34.7% of the pool). Fitch has designated two loans (34%) as Fitch Loans of Concern, which includes the one specially serviced asset (30.6%). Fitch modeled losses of 32.5% of the remaining pool; expected losses on the original pool balance total 3.7%, including \$20.8 million (2.7% of the original pool balance) in realized losses to date.

As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 96.8% to \$24.8 million from \$776.3 million at issuance. Per the servicer reporting, six loans (34.7% of the pool) are defeased. Interest shortfalls are currently affecting classes M through N.

The largest contributor to expected losses is the specially-serviced asset (30.6% of the pool). The real estate owned (REO) 206,011 square foot (sf) retail center located in Decatur, IL 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. The property is only 4% occupied by one tenant. One dark anchor tenant (30.2% of the net rentable area) continues to pay rent and has a lease that runs through 2018. Per the servicer, the asset is being held to allow discussions with the dark anchor. Once completed, the timing and strategy for an eventual REO sale will be determined.

RATING SENSITIVITIES

Defeased collateral fully covers class H and covers 96% of class J. These classes will remain stable at their current ratings for the remaining life of the deal as further upgrades are constrained by previous interest shortfalls. Classes K and L may be subject to further downgrades depending on the ultimate resolution of the specially serviced asset.

Fitch downgrades the following classes as indicated:

--\$5.8 million class L to 'Csf' from 'CCsf', RE 5%.

Fitch upgrades the following classes as indicated:

--\$3.9 million class J to 'Asf' from 'BBBsf', Outlook Stable.

Fitch affirms the following classes as indicated:

--\$4.9 million class H at 'AAsf', Outlook Stable;
--\$7.8 million class K at 'B-sf', Outlook Negative;
--\$2.5 million class M at 'Dsf', RE 0%.

The class A-1, A-2, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the rating on the interest-only class IO certificates.