NEW YORK--(BUSINESS WIRE)--Fitch Ratings has upgraded four classes and affirmed eight 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 upgrades reflect the stronger credit profile of the pool resulting from defeasance and stable collateral performance with minimal forecasted losses.
Of the remaining 12 loans, seven are secured by manufactured housing communities representing 79.7% of the pool. Additionally, the pool has a high single-borrower concentration, with six loans sponsored by Sun Communities Inc. representing 76.7% of the pool. There are no loans in special servicing and three loans (22% of the pool) are defeased. Approximately 82.7% of the pool is scheduled to mature in 2016.
As of the October 2015 distribution date, the pool's aggregate principal balance has been reduced by 93.5% to $84 million from $1.3 billion at issuance. Interest shortfalls are currently affecting classes J through F.
The largest loan in the pool (26.1% of the pool) is the Sun Communities Portfolio 12 which is secured by a portfolio of four manufactured housing communities located in Michigan and Florida. As of June 2015, the portfolio was 96% occupied with a NOI DSCR of 1.93x. The largest loan is cross-collateralized with the 3rd largest loan in the pool, Sun Communities - Catalina (9.8%), which has been defeased Together the crossed loans represent 35.9% of the pool.
Rating Outlooks remain Stable as the classes benefit from defeased collateral and continued delevering of the transaction through amortization. Further upgrades were limited due to the pool's increasing concentration and continued risk of adverse selection. The distressed class may be subject to further rating actions as losses are realized.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch upgrades the following classes as indicated:
--$21.1 million class D to 'AAAsf' from 'Asf'; Outlook Stable;
--$9.7 million class E to 'Asf' from 'BBBsf'; Outlook Stable;
--$16.2 million class F to 'BBsf' from 'Bsf'; Outlook Stable;
--$11.3 million class G to 'Bsf' from 'B-sf'; Outlook Stable.
Fitch affirms the following classes:
--$8.3 million class C at 'AAAsf'; Outlook Stable;
--$16.2 million class H at 'CCCsf'; RE 100%;
--$2.4 million class J at 'Dsf'; RE 0%;
--$0 class K at 'Dsf'; RE 0%;
--$0 class L at 'Dsf'; RE 0%;
--$0 class M at 'Dsf'; RE 0%;
--$0 class N at 'Dsf'; RE 0%;
--$0 class O at 'Dsf'; RE 0%.
The class A-1, A-2, A-3, A-4, A-5, A-6, A-1A, B, DM-A, DM-B, DM-C, DM-D, DM-E, DM-F and DM-G certificates have paid in full. 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.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)
Dodd-Frank Rating Information Disclosure Form