OREANDA-NEWS. Fitch Ratings has upgraded three and affirmed two 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 release.

KEY RATING DRIVERS
The upgrades reflect the amount of defeased collateral, increasing credit enhancement, continued paydown and better than expected recoveries on a disposed loan. There are eight loans remaining in the pool, six of which are defeased (51.9% of the pool). All of the defeased loans mature in June 2016. The two non-defeased loans (48.1%) are current and fully amortizing. Fitch has not designated either of the two as a Fitch Loan of Concern. As of the February 2016 distribution date, the pool's aggregate principal balance has been reduced by 98% to $15.3 million from $776.3 million at issuance. Interest shortfalls are currently affecting classes M through N.

The largest loan in the pool (43.6%) is secured by a single-tenant grocery store located in Fredericksburg, VA, which is roughly 50 miles south of Washington, D.C. The property is 100% leased to Giant Foods, Inc. through August 2029. The loan is fully amortizing and matures in March 2025. The year-end 2014 debt service coverage ratio (DSCR) was reported to be 1.33x.

The other remaining non-defeased loan is secured by a 32-unit multi-family property located 30 miles southeast of Charlotte in Wingate, NC. The property consists of 8 two-story residential buildings and is considered a 'tax credit' property with income limitations for residency and residents receiving government subsidies paying 50%-60% of the market rent. As of June 2015, occupancy was reported to be 94% and the DSCR was 1.32x.

RATING SENSITIVITIES
Outlooks for class H and J remain Stable and are fully covered by defeased collateral. Defeasance also covers 41% of class K. After the significant paydown expected in June 2016 from the defeased collateral, class K will become the most senior class. A further upgrade to class K is not warranted at this time due to the pool concentration as only two non-defeased loans remain. It is expected that class K will remain at its current rating for the remaining life of the deal unless there is a significant performance decline of one of the remaining assets.

DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch upgrades the following classes and assigns or revises Rating Outlooks as indicated:

--$854,747 class H to 'AAAsf' from 'AAsf'; Outlook Stable;
--$3.9 million class J to 'AAAsf' from 'Asf'; Outlook Stable;
--$7.8 million class K to 'BBsf' from 'B-sf'; Outlook to Stable from Negative.

Fitch affirms the following class and revises the RE as indicated:

--$2.8 million class L at 'Dsf'; RE 75%.

Fitch affirms the following class as indicated:

--$0 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.