Fitch Upgrades 4 Classes of First Union, Series 1999-C4

Business Wire, June 7, 2005

CHICAGO -- Fitch Ratings upgrades First Union National Bank Commercial Mortgage Trust's (First Union) commercial mortgage pass-through certificates, series 1999-C4, as follows:

-- $42.1 million class C to 'AA ' from 'AA-';

-- $13.3 million class D to 'AA-' from 'A ';

-- $28.8 million class E to 'A-' from 'BBB ';

-- $13.3 million class F to 'BBB' from 'BBB-'.

In addition, Fitch affirms the following classes:

-- $49.6 million class A-1 'AAA';

-- $447.2 million class A-2 'AAA';

-- Interest-only class IO 'AAA';

-- $46.5 million class B 'AAA';

-- $33.2 million class G 'BB ';

-- $11.1 million class H 'BB';

-- $2.2 million class J 'BB-';

-- $6.6 million class K 'B ';

-- $8.9 million class L 'B'.

The $8.9 million class M certificates remain at 'CCC'. Fitch does not rate the $16.4 million class N certificates.

The ratings upgrades are due to the increase in subordination levels resulting from loan payoffs and amortization. As of the May 2005 distribution date, the pool has paid down 17.8% to $728 million from $885.7 million at issuance. In addition, 12 loans (9.5%) have defeased, including the Atriums of Kendall Apartments loan (3%), which is the third largest loan in the pool.

Four assets (3.7%) are currently in special servicing: three real estate owned (REO) properties (3.2%) and one loan that is current (0.5%). The largest specially serviced asset is Gateway Center (1.6%), an REO retail property located in Federal Way, WA. The property is currently 78% occupied and is being marketed for sale. The second largest specially serviced asset is Grand Court Denver (1.4%), an REO independent and assisted living facility located in Denver, CO. This property is also being marketed for sale, which is targeted for the end of August 2005. The Timbers Apartments loan (0.5%) has remained current and is pending return to the master servicer. Losses are expected on the three REO properties.

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