June 8, 2012 / 9:01 PM / 6 years ago

TEXT-Fitch downgrades BACM 2004-6

June 8 - Fitch Ratings has downgraded four and affirmed 14 classes of Banc
of America Commercial Mortgage Inc., commercial mortgage pass-through
certificates, series 2004-6 (BACM 2004-6). A detailed list of rating actions
follows at the end of this press release.	
	
The downgrades reflect an increase in Fitch modeled losses across the pool.
Fitch modeled losses of 11% of the remaining pool; modeled losses of the
original pool are at 6.6%, including losses already incurred to date. As of the
May 2012 distribution date, the pool's certificate balance has been reduced by
40.5% (to $569.58 million from $956.59 million), of which 40.4% was due to
paydowns and 0.1% was due to realized losses. Two loans, representing 2.4% of
the pool, have been defeased.	
	
Fitch has designated 30 loans (66%) as Fitch Loans of Concern, which includes
five specially serviced loans (6.9%).	
	
The largest contributor to modeled losses is a loan (8.3%) secured by 496,895
square feet of a 750,377 square foot (sf) regional mall located in Springfield,
OH. The loan was previously transferred to special servicing in June 2010 for
imminent default and was subsequently modified. The terms of the modification
included the bifurcation of the loan into an A-note and a B-note and the
extension of the loan's maturity date. The loan has since transferred back to
the master servicer. Fitch views the B-note portion of the loan as a hope note.
As of year-end (YE) 2011, occupancy at the property was stable at 87%.	
	
The second largest contributor to modeled losses is a loan (4.5%) secured by a
171,365 sf office property located in Los Angeles, CA. For YE 2011, the debt
service coverage ratio was 0.48 times, on a net-operating income basis. As of
the March 2012 rent roll, the property was 77% occupied. The second largest
tenant (16% of the net rentable area) vacated the property when its lease
expired at the end of 2011. Operating expenses at the property have been higher
than expected since the loan's inception. YE 2011 operating expenses increased
14% when compared to YE 2010 and 144% when compared to issuance. The increase in
operating expenses is the result of an increase in real estate taxes and
insurance expenses.	
	
The third largest contributor to modeled losses is a specially serviced loan
(2.8%) secured by a 359,462 sf mixed use property located in Tustin, CA. The
property improvements include a 15-building business park, a single tenant
60,000 sf building, and a 579 unit self storage facility. The loan was
transferred to special servicing in December 2011 for imminent default. The
borrower indicated in a letter to the master servicer that they would no longer
be able to support operating shortfalls. The special servicer and the borrower
continue to discuss loan workout options.	
	
Fitch has downgraded and revised Rating Outlooks on the following classes as
indicated:	
	
--$9.6 million class E to 'BBB-sf' from 'A-sf'; Outlook to Negative from Stable;	
--$14.3 million class F to 'Bsf' from 'BBB-sf'; Outlook Negative;	
--$9.6 million class G to 'B-sf' from 'BBsf'; Outlook Negative;	
--$13.2 million class H to 'CCCsf' from 'B-sf'; RE 0%.	
	
In addition, Fitch has affirmed the following classes:	
	
--$89.5 million class A-3 at 'AAAsf'; Outlook Stable;	
--$35.4 million class A-4 at 'AAAsf'; Outlook Stable;	
--$16.5 million class A-AB at 'AAAsf'; Outlook Stable;	
--$237.4 million class A-5 at 'AAAsf'; Outlook Stable;	
--$56.2 million class A-J at 'AAAsf'; Outlook Stable;	
--$19.1 million class B at 'AAsf'; Outlook Stable;	
--$9.6 million class C at 'AA-sf'; Outlook Stable;	
--$17.9 million class D at 'Asf'; Outlook Stable;	
--$6 million class J at 'CCCsf'; RE 0%;	
--$4.8 million class K at 'CCCsf'; RE 0%;	
--$4.8 million class L at 'CCCsf'; RE 0%;	
--$3.6 million class M at 'CCsf'; RE 0%;	
--$3.6 million class N at 'Csf'; RE 0%;	
--$4.8 million class O at 'Csf'; RE 0%.	
	
Classes A-1 and A-2 have paid in full. Fitch does not rate class P. Fitch had
previously withdrawn the rating on the interest-only classes X-C and X-P. (For
additional information on the withdrawal of the rating on the interest-only
class, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related
Structured Finance Securities', dated June 23, 2010.)	
	
	
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	
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

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