AMRESCO Ser 1997-C1 $451.7M Certs Affirmed By Fitch IBCA, Inc.

NEW YORK--(BUSINESS WIRE)--Sept. 21, 1999--

AMRESCO Commercial Mortgage Funding I, mortgage pass-through certificates, series 1997-C1, $118.9 million class A-1, $40.0 million class A-2, $141.6 million class A-3, and interest-only class X are affirmed at `AAA' by Fitch IBCA. In addition, the following classes are affirmed:

-- $24.0 million class B is affirmed at `AA+',

-- $12.0 million class C is affirmed at `AA',

-- $21.6 million class D is affirmed at `A',

-- $26.4 million class E is affirmed at `BBB',

-- $9.6 million class F is affirmed at `BBB-',

-- $31.2 million class G is affirmed at `BB',

-- $4.8 million class H is affirmed at `BB-',

-- $7.2 million class J is affirmed at `B' and

-- $2.4 million class K is affirmed at `B-'.

Fitch IBCA did not rate the $12.0 million class L certificates. The affirmations follow Fitch IBCA's annual review of the transaction, which closed in June 1997.

The certificates are collateralized by 96 fixed rate multifamily and commercial mortgage loans, securing properties located in 28 states and the District of Columbia. As of the September 1999 distribution date, the pool's aggregate principal balance declined by 6% from $480.1 million at closing to $451.7 million. One loan (3%) has paid off since closing. Currently one loan (0.53%) is 30 days delinquent and one loan (0.97%) is 90 days delinquent. Both of these loans are being specially serviced by AMRESCO Management, Inc.

As of August 1999, the master servicer, AMRESCO Services,L.P. collected year-end 1998 property financial statements for 91 loans, representing 94% of the pool's unpaid principal balance. The pool's corresponding weighted average debt service coverage ratio (DSCR) increased to 1.52 times (x) from 1.35x at closing. The weighted average DSCR was calculated using year-end 1998 net cash flow. Two loans (1.2%), including one specially serviced loan (0.53%), have the latest available DSCR below 1.00x.

One loan, representing 4% of the remaining pool balance, is secured by a power center, anchored by Builder's Square. Builder's Square is operated by Hechinger Co., a home improvement retailer, which filed for Chapter 11 bankruptcy protection in June 1999. In September 1999, however, Hechinger announced that it had decided to liquidate rather than reorganize. The Builder's Square lease is guaranteed by Kmart.

A stress scenario was applied whereby loans identified as potential problems were assumed to default. Under this stress scenario subordination levels remain sufficient to justify the rating actions. Fitch IBCA will continue to monitor the transaction, as surveillance is ongoing.