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TEXT-Fitch cuts 2 classes of Bank of America N.A. FUNB 2001-3
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 Fitch has withdrawn the rating on the interest-only class XC.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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