CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed both classes of Banc of America Large Loan, Inc.'s Banc of America Re-REMIC Trust 2009, commercial mortgage certificate-backed certificates, series 2009-UBER1 (BALL 2009-UBER1). A detailed list of the rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to the consistent performance and increase in credit enhancement due to principal repayment from maturing loans of the underlying transactions. Eight of the nine underlying bonds are rated by Fitch and reviewed in the last 12 months; one transaction has a Fitch shadow rating.
As of the July 2016 distribution date, Fitch has public ratings on eight of the nine underlying bonds with current ratings as follows:
--BACM 2007-3; class A-4; 18.2% of the Re REMIC; 'AAAsf', Outlook Stable;
--CWCI 2007-C3; class A-4; 21.7%; 'AAAsf', Outlook Stable;
--GSMS 2006-GG8; class A-4; 6.7%; 'AAAsf', Outlook Stable;
--JPMCC 2007-LDP10; class A-3; 16.4%; 'AAAsf', Outlook Stable;
--LBUBS 2007-C6; class A-4; 8.1%; 'AAAsf', Outlook Stable;
--ML CFC 2006-3; class A-4; 1.8%; 'AAAsf', Outlook Stable;
--ML CFC 2007-9; class A2007-c1-4; 9.9%; 'AAAsf', Outlook Stable;
--MLMT 2007-C1; class A-4; 5.2%; 'Asf', Outlook Negative.
Fitch does not rate the underlying A-4 bond in BACM 2006-6 (12% of the Re REMIC). As part of its analysis, Fitch reviewed the performance of the non-rated BACM 2006-6 using the Surveillance Methodology for U.S. Fixed Rate CMBS Transactions and determined the performance to be indicative of an affirmation of the bond's shadow rating.
This transaction was also analyzed under the framework described in Fitch's report 'Global Rating Criteria for Structured Finance CDOs' using the Portfolio Credit Model (PCM) for projecting future default levels for the underlying portfolio. The degree of correlated default risk of the collateral is high given the single sector and vintage concentration. Based on this analysis and given the credit enhancement available to classes A-4A and A-4B, the credit characteristics of the bonds are consistent with the ratings assigned above.
This transaction is a resecuritization of the ownership interest in nine commercial mortgage-backed certificates which total $268,997,771. Principal and interest from the underlying certificates are pooled and applied to the A-4A and A-4B certificates in sequential order, while losses are applied in reverse sequential order.
The class A-4A bond has a Stable Outlook based on the class's senior position and higher credit enhancement through principal amortization. The class has received is 37.8% principal paydown compared to the original balance at issuance. The Negative Outlook for the class A-4B bond reflects the subordinate position of the bond and the risk of negative rating migration to the underlying MLMT 2007-C1 transaction. Should downgrades to the underlying transaction occur, downgrades to class A-4B are possible.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following classes as indicated:
--$164,146,718 class A-4A at 'AAAsf'; Outlook Stable.
--$104,851,053 class A-4B at 'A-sf'; Outlook Negative.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
Global Surveillance Criteria for Structured Finance CDOs (pub. 05 Jul 2016)
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
Dodd-Frank Rating Information Disclosure Form