Fitch Ratings has downgraded six classes and affirmed 17 classes of Banc
of America Commercial Mortgage Inc. Securities Trust 2004-4, commercial
mortgage pass-through certificates. A detailed listing of rating actions
follows at the end of this release.
The downgrades are due to increased loss expectations on the specially
serviced loans. Fitch modeled losses of 12%, most of which is due to
loans in special servicing. As of the February 2012 distribution date,
seven loans (11.51% of the pool), were in special servicing.
Fitch expects classes K through P to be fully depleted by losses on
specially serviced loans and class J to be significantly impacted. As of
February 2012, there are cumulative interest shortfalls in the amount of
$4.8 million currently affecting classes H through P.
As of the February 2012 distribution date, the pool's aggregate
principal balance has been paid down by 56.5% to $619 million from
approximately $1.426 billion at issuance. Four loans (5.59%) have
defeased since issuance.
The largest contributor to Fitch expected losses is a Real Estate Owned
(REO) 722,253 square foot (sf) industrial/warehouse property in North
Kingstown, RI (3.1% of the pool). The special servicer has been working
to increase occupancy. New valuations have been received and are
significantly below the debt.
The next largest contributor to Fitch expected losses is REO 159,327 sf
retail property (1.74 % of outstanding pool), located in Pottstown, PA.
The largest tenant at the property, a 52,700 sf grocery store (35.9% of
NRA), has vacated, but the tenant is expected to continue paying rent
through its lease expiration in 2014. The special servicer has been
working to increase occupancy before pursuing an asset sale.
The third largest contributor to expected losses is a REO 96,576 sf
suburban office located in Concord, CA (1.9% of the pool). Current
occupancy is 67%; however, a number of leases have recently been renewed
and the property management team has had recent success securing new
tenants.
Fitch downgrades the following classes:
--$16.2 million class H to 'CCCsf/RE0' from 'B-sf';
--$6.5 million
class J to 'Csf/RE0'from 'CCCsf/RE100'
--$6.5 million class K to
'Csf/RE0' from 'CCCsf/RE100';
--$6.5 million class L to 'Csf/RE0'
from 'CCsf/RE40';
--$3.2 million class M to 'Csf/RE0' from 'CC/RE0';
--$3.2
million class N to 'Csf/RE0' from 'CC/RE0'.
Fitch affirms the following classes and Outlooks:
--$45.8 million class A-5 at 'AAAsf'; Outlook Stable;
--$272.2
million class A-6 at 'AAAsf'; Outlook Stable;
--$113.6 million
class A-1A at 'AAAsf'; Outlook Stable;
--$35.6 million class B at
'AAAsf'; Outlook Stable;
--$11.3 million class C at 'AAsf'; Outlook
Stable;
--$21.1 million class D to 'BBBsf'; Outlook Stable;
--$9.7
million class E to 'BBB-sf'; Outlook Stable;
--$16.2 million class
F at 'Bsf'; Outlook Negative;
--$11.3 million class G at 'B-sf';
Outlook Negative;
--$4.9 million class O at 'Csf/RE0';
--$2.3
million class DM-A at 'A sf'; Outlook Stable;
--$4.8 million class
DM-B at 'Asf'; Outlook Stable;
--$3.8 million class DM-C at 'A-sf';
Outlook Stable;
--$4.1 million class DM-D at 'BBB sf'; Outlook
Stable;
--$4.4 million class DM-E at 'BBBsf'; Outlook Stable;
--$4
million class DM-F at 'BBB-sf'; Outlook Stable;
--$3.7 million
class DM-G at 'BBB-sf'; Outlook Stable.
Fitch does not rate the $12.2 million class P, class X-P and class BC.
Classes A-1, A-2, A-3, and A-4 have paid in full. Class XC was
previously withdrawn.
Additional information on Fitch's criteria for analyzing U.S. CMBS
transactions is available in the Dec. 21, 2011 report, 'Surveillance
Methodology for U.S. Fixed-Rate CMBS Transactions', which is available
at
www.fitchratings.com
under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at
www.fitchratings.com.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured
Finance Rating Criteria' (Aug. 4, 2011);
--'Surveillance
Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21, 2011).
Applicable Criteria and Related Research:
Global Structured Finance
Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
Surveillance
Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869
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IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
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