CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 23 classes of Banc of America Commercial Mortgage Inc. (BACM 2004-4) commercial mortgage pass-through certificates series 2004-4. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect sufficient credit enhancement to the remaining Fitch rated classes after consideration for expected losses and significant maturity concentration in 2014. Fitch modeled losses of 10% of the remaining pool; expected losses on the original pool balance total 4.8%, including losses already incurred. The pool has experienced $4 million (0.3% of the original pool balance) in realized losses to date. Fitch has designated 17 loans (22.9%) as Fitch Loans of Concern, which includes eight specially serviced assets (15.1%).
As of the January 2013 distribution date, the pool's aggregate principal balance has been reduced by 57.5% to $606.7 million from $1.43 billion at issuance. Per the servicer reporting, four loans (5.6% of the pool) have defeased since issuance. Interest shortfalls are currently affecting classes H through P.
The largest contributor to expected losses is a 723,971 square foot (sf) industrial property (3.2%) located in North Kingstown, RI. The loan transferred to special servicing in October 2008 for payment default and is real estate owned (REO). The servicer is working to improve occupancy prior to marketing the property for sale.
The second largest contributor to expected losses is a 161,727 sf retail property (1.7%) located in Philadelphia, PA. The loan transferred to special servicing in April 2009 due to maturity default and is REO. Several anchor tenants have relocated to a nearby retail center and the servicer is marketing the vacant spaces.
Fitch affirms and revises the Outlooks of the following classes as indicated:
--$16.2 million class F at 'Bsf', Outlook to Stable from Negative;
--$11.3 million class G at 'B-sf', Outlook to Stable from Negative;
Fitch affirms the following classes as indicated:
--$35.3 million class A-5 at 'AAAsf', Outlook Stable;
--$272.2 million class A-6 at 'AAAsf', Outlook Stable;
--$111.6 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 at 'BBBsf', Outlook Stable;
--$9.7 million class E at 'BBB-sf', Outlook Stable;
--$16.2 million class H at 'CCCsf', RE 0%;
--$6.5 million class J at 'Csf', RE 0%;
--$6.5 million class K at 'Csf', RE 0%;
--$6.5 million class L at 'Csf', RE 0%;
--$3.2 million class M at 'Csf', RE 0%;
--$3.2 million class N at 'Csf', RE 0%;
--$4.9 million class O at 'Csf', RE 0%;
--$1.9 million class DM-A at 'A+sf', Outlook Stable;
--$4.1 million class DM-B at 'Asf', Outlook Stable;
--$3.3 million class DM-C at 'A-sf', Outlook Stable;
--$3.5 million class DM-D at 'BBB+sf', Outlook Stable;
--$3.7 million class DM-E at 'BBBsf', Outlook Stable;
--$3.4 million class DM-F at 'BBB-sf', Outlook Stable;
--$3.2 million class DM-G at 'BBB-sf', Outlook Stable.
Fitch does not rate the class P and BC certificates. Fitch previously withdrew the ratings on the interest-only class X-C and X-P certificates.
The class DM certificates are related to a non-pooled B-note secured by the Dallas Market Center. The underlying collateral is a 3 million sf trade mart property located in Dallas, TX. Fitch affirms these classes as performance of the property has remained stable with trailing 12 month (TTM) servicer reported debt service coverage ratio (DSCR) of 6.66x and occupancy of 80% as of September 2012.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', 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' (June 6, 2012);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria