Fitch Ratings Affirms AMRESCO 1997-C1.

CHICAGO -- Fitch affirms AMRESCO Commercial Mortgage Funding I Corp.'s, mortgage pass-through certificates, series 1997-C1, as follows:

--Interest-only class X at 'AAA';

--$5.9 million class E at 'AAA';

--$9.6 million class F at 'AAA';

--$31.2 million class G at 'AAA';

--$4.8 million class H at 'A+';

--$7.2 million class J at 'BB+';

--$2.4 million class K at 'B-'.

Fitch does not rate the $8.7 million class L certificates. Classes A-1, A-2, A-3, B, C, and D have been paid in full.

The rating affirmations are the result of increased credit enhancement offsetting a high concentration of Fitch loans of concern. As of the December 2006 distribution date, the pool's aggregate principal balance has been reduced 85.5% to $69.8 million from $480.1 million at issuance, an increase of 7% since the last Fitch rating action.

Two assets (12.2%) are in special servicing with expected losses. The largest specially serviced asset (8.5%) is a real estate owned (REO) multifamily property in Atlanta, Georgia. The special servicer is actively marketing the property for sale.

The second largest specially serviced asset (3.70%) is a REO industrial property in Leonminster, Massachusetts. The property is 100% vacant and also currently listed for sale.

In total, Fitch loans of concern comprise 43.5% of the pool. This includes the two specially serviced assets, as well as the second and third largest loans in the pool(8.8% and 8.7% respectively). The second largest loan is collateralized by a healthcare center in Brooklyn, NY and continues to have a debt service ratio (DSCR) below 1.0x. As of year end 2005, the servicer provided DSCR was -0.3x, and year to date June 2006 was -0.04x. The loan remains current. The third largest loan is collateralized by a multifamily property in Tulsa, OK. The YE 2005 DSCR was 0.81x. Expenses at the property have increased since issuance.

Twenty-one loans remain in the pool and 80% of them mature in 2007. Fitch will monitor the loans' ability to refinance.

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