TEXT-Fitch cuts 2 classes of Bank of America N.A. FUNB 2001-3

Mon Apr 30, 2012 4:49pm EDT

April 30 - Fitch Ratings has downgraded two classes of Bank of 	
America, N.A. - First Union National Bank Commercial Mortgage Trust's 	
(BofA-FUNB) commercial mortgage pass-through certificates, series 2001-3. A 	
detailed list of rating actions follows at the end of this press release. 	
	
The downgrades reflect an increase in Fitch expected losses across the pool, 	
most of which are attributed to the large percentage of loans in special 	
servicing. Fitch modeled losses of 4.93% of the original pool balance (includes 	
losses realized to date) based on updated cashflows and valuations of specially 	
serviced loans. There are currently seven specially serviced loans (42.2%) in 	
the pool. 	
	
As of the April 2012 distribution date, the pool's collateral balance has paid 	
down 90.5% to $108.2 million from $1.1 billion at issuance. Cumulative interest 	
shortfalls in the amount of $1.15 million are currently affecting classes M 	
through Q.	
	
The largest contributor to Fitch modeled losses is secured by a 157,387 square 	
foot (sf) office property located in Columbus, OH. The loan transferred to 	
special servicing in May 2011 due to imminent maturity default and the expected 	
loss of a major tenant. The mortgage loan is expected to be included in an 	
upcoming note sale. 	
	
Fitch downgrades the following classes and assigns Recovery Estimates (RE) as 	
indicated:	
	
--$8.5 million class M to 'CCCsf' from 'Bsf'; RE 85%;	
--$14.2 million class N to 'Csf' from 'CCsf'; RE 0%.	
	
Additionally, Fitch affirms the following classes and revises Rating Outlooks as	
indicated: 	
	
--$16.7 million class G at 'AAAsf'; Outlook Stable;	
--$14.2 million class H at 'AAAsf'; Outlook Stable;	
--$14.2 million class J at 'AA+sf'; Outlook to Stable from Positive;	
--$29.8 million class K at 'A-sf'; Outlook Stable;	
--$8.5 million class L at 'BBBsf'; Outlook Negative.	
	
The $2 million class O and the zero balance class P remain at 'Dsf/RE 0%'. Class	
A-1, A-2, A-2F, B, C, D, E, F, and XP have paid-in-full. Fitch did not rate the 	
$28.4 million class Q which has been fully written off or the subordinate 	
component class V-1, V-2, V-3, V-4, and V-5 certificates. 	
	
Fitch has withdrawn the rating on the interest-only class XC. (For additional 	
information on the withdrawal of the rating on the interest-only class, see 	
'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance 	
Securities', dated June 23, 2010.)
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