TEXT-Fitch takes various actions on Prudential Rock 2001-C1

Fri Dec 7, 2012 1:04pm EST

Dec 7 - Fitch Ratings has downgraded three, affirmed two, and placed three
classes of Prudential Mortgage Capital Funding ROCK commercial mortgage
pass-through certificates, series 2001-C1 on Rating Watch Negative. A detailed
list of rating actions follows at the end of this release.

The Negative Ratings Watch reflects concerns surrounding litigation on the
largest loan within the transaction. The borrower and tenant filed a lawsuit in
August 2012 seeking declaratory judgment to allow the termination of the
tenant's lease. Litigation is pending while the loan remains current. While
Fitch expects the most senior classes to be recover full principal, there is a
concern that interest shortfalls may affect any one of these classes prior to
repayment, additionally, six (86.3%) of the remaining 11 loans are currently in
special servicing.

Fitch modeled losses of 27.9% of the remaining pool; expected losses on the
original pool balance total 3.8%, including losses already incurred. The pool
has experienced $14.7 million (1.6% of the original pool balance) in realized
losses to date.

As of the November 2012 distribution date, the pool's aggregate principal
balance has been reduced by 92% to $72.3 million from $908.2 million at
issuance. Interest shortfalls are currently affecting classes J through O.

The largest contributor to expected losses is a 146,340 square foot (sf) office
property (22.1% of the pool) located in Columbus, OH. The loan transferred to
the special servicer for a second time in April 2012. The special servicer is
working to close a deed in lieu.

The next largest contributor to expected losses is the specially-serviced
188,547 sf office property located in Cleveland, OH (10.5% of the pool). The
loan transferred to the special servicer in January 2011 after failing to
refinance or extend the loan prior to maturity. Additionally, the buildings
largest tenant, Cuyahoga County, has recently given notice of early lease
termination. The special servicer is actively pursuing foreclosure.

Fitch downgrades the following classes:

--$22.7 million class J notes to 'Bsf' from 'BBB-sf'; Outlook Negative;
--$6.8 million class K notes to 'CCCsf' from 'BBsf'; RE 65%;
--$4.5 million class L notes to 'CCsf' from 'Bsf'; RE 0%.

Fitch affirms the following classes:

--$9.1 million class M notes at 'Csf'; RE 0%'.
--$1.2 million class N notes at 'Dsf'; RE 0%.

Fitch has placed the following classes on Rating Watch Negative as indicated:

--$0.7 million class F notes 'AAAsf';
--$13.6 million class G notes 'AAAsf';
--$13.6 million class H notes 'Asf'.

Fitch does not rate class O. Classes A-1, A-2, B, C, D, E, and X-1 have paid in
full. Fitch previously withdrew the rating on the interest-only class X-2
certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions
is available in the Dec. 21, 2011 report, 'Surveillance Methodology for U.S.
Fixed-Rate CMBS Transactions', which is available at 'www.fitchratings.com'
under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21,
2011).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

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