TEXT-Fitch downgrades 8 classes of Merrill Lynch 2004-BPC1

Fri Mar 1, 2013 4:43pm EST

March 1 - Fitch Ratings has downgraded eight classes and affirmed nine
classes Merrill Lynch Mortgage Trust commercial mortgage pass-through
certificates, series 2004-BPC1 due to an increase in Fitch's expected losses. A
detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
Fitch modeled losses of 11.5% of the remaining pool; expected losses on the
original pool balance total 8.3%, including losses already incurred. The pool
has experienced $21.4 million (1.7% of the original pool balance) in realized
losses to date. Fitch has designated 19 loans (32.7%) as Fitch Loans of Concern,
which includes six specially serviced assets (10.1%).

RATING SENSITIVITIES
The ratings to the super senior classes are expected to remain stable. The A-J,
B, and C classes may be subject to a downgrade if there is further deterioration
to the pool's cash flow performance and/or decrease in value of the specially
serviced loans. Additional downgrades to the distressed classes (those rated
below B) are expected as losses are realized.

As of the February 2013 distribution date, the pool's aggregate principal
balance has been reduced by 42.8% to $710.6 million from $1.24 billion at
issuance. Per the servicer reporting, five loans (5.3% of the pool) have
defeased since issuance. Interest shortfalls are currently affecting classes G
through Q.

The largest contributor to expected losses is the specially-serviced REO Prium
Office Portfolio (3.9% of the pool), which is secured by a portfolio of 10
office buildings totaling 287,921 square feet (sf) located in Washington state,
mainly around the state capital. The tenants are primarily state agencies and
other official state tenants. The loan was transferred to special servicing in
July 2010 after the borrower placed junior financing on the properties without
lender consent. Performance has deteriorated; the combined occupancy of the all
the buildings is 10.6%. The special servicer has sold three of the properties
and the remaining seven are REO.

The next largest contributor to expected losses is the Simon - Washington Square
Mall (3.8%), which is secured by by a 448,762 sf portion of a regional mall
totaling 922,614 sf located in Indianapolis, IN. The loan transferred to special
servicing in June 2010 and was modified. The modification closed in December
2010, and the loan was transferred back to the master servicer in March 2011.
The loan was split into a $15 million A-Note and $12.5 million B-Note. The
borrower made an equity contribution to fund additional reserves and paydown a
portion of the outstanding balance. The maturity of the loan has been extended
to July 1, 2016 and the IO period was extended to December 2011. As of December
2011 the NCF DSCR was 1.39x but would be 1.19x assuming the loan was amortizing
during that period. Fitch expects losses at maturity of the loan as current
performance of the property does not support the refinance of both the A and B
notes.

The third largest contributor to expected losses is a 92,522 sf (1.3%) office
property located in independence, MO. The property became REO in May 2012 and is
currently 11% occupied. The loan was transferred to the special servicer in
February 2011 due to monetary default when the largest tenant, State Farm,
vacated 74% of the net rentable area. The property is expected to be marketed
for sale in the near term.

Fitch downgrades the following classes and assigns or revises Rating Outlooks
and Recovery Estimates (REs) as indicated:

--$94.8 million class AJ to 'AAsf' from 'AAAsf'; Outlook to Negative from
Stable;
--$26.4 million class B to 'BBB-sf' from 'Asf'; Outlook to Negative from Stable;
--$12.4 million class C to 'BBsf' from 'BBB-sf'; Outlook Negative;
--$18.6 million class D to 'CCCsf' from 'Bsf'; RE 100%;
--$9.3 million class E to 'CCsf' from 'CCCsf'; RE 0%;
--$15.5 million class F to 'CCsf' from 'CCCsf'; RE 0%;
--$10.9 million class G to 'Csf' from 'CCsf'; RE 0%;
--$15.5 million class H to 'Csf' from 'CCsf'; RE 0%.

Fitch affirms the following classes as indicated:

--$77.6 million class A-1A at 'AAAsf'; Outlook Stable;
--$8.7 million class A-4 at 'AAAsf'; Outlook Stable;
--$397.2 million class A-5 at 'AAAsf'; Outlook Stable;
--$6.2 million class J at 'Csf'; RE 0%;
--$4.7 million class K at 'Csf'; RE 0%;
--$6.2 million class L at 'Csf'; RE 0%;
--$4.7 million class M at 'Csf'; RE 0%;
--$1.9 million class N at 'Dsf'; RE 0%;
--$0 class P at 'Dsf'; RE 0%.

The class A-1, A-2 and A-3 certificates have paid in full. Fitch does not rate
the class Q certificates. Fitch previously withdrew the ratings on the
interest-only class XC and XP certificates. (For additional information on the
withdrawal of the rating on class X, see 'Fitch Revises Practice for Rating IO &
Pre-Payment Related Structured Finance Securities', dated June 23, 2010.)

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