Fitch Upgrades 5 Classes of Banc of America Commercial Mortgage 2001-1.

NEW YORK -- Fitch Ratings upgrades Banc of America Commercial Mortgage Inc.'s commercial mortgage pass-through certificates, series 2001-1, as follows:

--$19 million class D to 'AAA' from 'AA+';

--$9.5 million class E to 'AA+' from 'AA';

--$9.5 million class F to 'AA' from 'A+';

--$19 million class G to 'A' from 'A-';

--$14.2 million class H to 'BBB+' from 'BBB'.

Fitch also affirms the following classes:

--$502.2 million class A-2 at 'AAA';

--$47.6 million class A-2F at 'AAA';

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

--$35.6 million class B at 'AAA';

--$21.3 million class C at 'AAA';

--$23.5 million class K at 'BB';

--$13.3 million class J at 'BBB-';

--$2.1 million class L at 'BB-';

--$5.5 million class M at 'B+';

--$6.8 million class N at 'B';

--$5.9 million class O at 'B-'.

Fitch does not rate the $5.4 million class P certificates. Class A-1 has paid in full.

The rating upgrades reflect increased subordination levels due to payoffs and scheduled amortization, as well as the additional defeasance of 18 loans (7%) since Fitch's last rating action. As of the December 2006 distribution date, the pool's aggregate balance has decreased 21.9% to $740.3 million from $948.1 million at issuance. Thirty-one loans (14.4%) have defeased since issuance.

Currently, four loans (2.6%) are in special servicing. The largest specially serviced loan (1.4%) is a multi-family property in Lindenwold, NJ, which is current. The property is suffering cash flow problems due to declining occupancy. The special servicer is evaluating the borrower's request.

The second largest specially serviced loan (0.7%) is a retail shopping center in Arabi, LA, and is 90-plus days delinquent. The property suffered heavy damage due to Hurricane Katrina. The borrower has received limited proceeds from the insurance company for hurricane-related damages, and the insurance claim by the single tenant, which was self-insured, remains pending. The single tenant has yet to recommence operations at the site. The special servicer is dual-tracking a foreclosure along with a workout.

The third largest specially serviced loan (0.4%) is an office property in Greenville, SC, which is current. The loan transferred to special servicing in September 2006 due to imminent default. The special servicer is assessing workout options with respect to this loan.

Fitch expects that projected losses on the specially serviced loans will be absorbed by the nonrated class P.

Fitch has designated 28 loans as Fitch Loans of Concern; these include the specially serviced loans and those loans with low cash flow and occupancy. Of these loans, the largest Loan of Concern, which is the fifth largest loan (2.3%) in the pool, is an office property in Phoenix, AZ, which has been performing poorly since 2003 due to occupancy issues. The loan remains current, and occupancy has increased to 77% at June 2006 from 69% at year-end 2005.

The 315 Park Avenue South loan (11.6%), the only credit assessed loan in the transaction, maintains an investment-grade credit assessment. Occupancy at June 2006 remains in line with year-end 2005 occupancy at 92%.

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