Fitch Affirms One Class of Banc of America Funding 2013-R1 Ltd.

NEW YORK--()--Fitch Ratings has affirmed the class A1 notes issued by Banc of America Funding 2013-R1 Ltd. (BAFC 2013-R1), as follows:

--$61,751,667 class A1 notes at 'Asf', Outlook Stable.

KEY RATING DRIVERS

The affirmation is attributed to the continued principal amortization since last review in March 2014, in line with Fitch's projections at last review. The class A1 notes of BAFC 2013-R1 have received approximately $40.3 million, or 39.5% of their initial balance.

Fitch expects the class A1 notes to remain outstanding for at least another year.

BAFC 2013-R1 is collateralized by 54.7% of the class A-1a notes and 99.9% of the A-1b notes issued by West Coast Funding I, Ltd./Corp. (West Coast Funding), a 2006 vintage structured finance CDO. Additional credit enhancement for the class A1 in BAFC 2013-R1 was created by diverting interest and principal due to the unrated subordinated notes to the class A1 notes. The underlying portfolio of West Coast Funding includes non-prime RMBS collateral (52% at the end of January 2015) from 2005 and 2006 vintages.

Given the historical performance volatility for the underlying assets and expected payoff horizon, Fitch believes that a rating higher than 'Asf' would be inconsistent with the residual risks.

RATING SENSITIVITIES

The ratings of the BAFC 2013-R1 class A1 notes are sensitive to any material changes in Fitch's recovery expectations for the underlying assets.

A comparison of the transaction's Representations, Warranties, and Enforcement Mechanisms (RW&Es) to those of typical RW&Es for that asset class is available by accessing the report and link indicated below.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (August 4, 2014);

--'Global Rating Criteria for Structured Finance CDOs' (July 16, 2014);

--'Counterparty Criteria for Structured Finance and Covered Bonds' (May 14, 2014);

--'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions' (May. 28, 2014).

--'Banc of America Funding 2013-R1 LTD. - Appendix' (March 28, 2013).

Applicable Criteria and Related Research:

Banc of America Funding 2013-R1 LTD. -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704619

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Counterparty Criteria for Structured Finance and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Global Rating Criteria for Structured Finance CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751136

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=980260

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Contacts

Fitch Ratings
Primary Surveillance Analyst
Emmett O'Brien
Analyst
+1-212-908-0648
Fitch Ratings, Inc.
33 Whitehall Street
New York, New York, 10004
or
Committee Chairperson
Alina Pak, CFA
Senior Director
+1-312-368-3184
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Surveillance Analyst
Emmett O'Brien
Analyst
+1-212-908-0648
Fitch Ratings, Inc.
33 Whitehall Street
New York, New York, 10004
or
Committee Chairperson
Alina Pak, CFA
Senior Director
+1-312-368-3184
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com