Fitch Affirms BACM 2004-4

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed seven 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 affirmations reflect stable performance of the pool. Although the transaction is highly concentrated, the four remaining loans are reporting stable performance with a weighted average NOI DSCR of 1.84x. None of the loans have been in special servicing. Three of the four remaining loans (85.4% of the pool) have maturities in 2018 and 2019; however, uncertainty remains related to the refinance of the fourth largest loan (14.6%) which is scheduled to mature in September 2016.

As of the August 2016 distribution date, the pool's aggregate principal balance has been reduced by 98.7% to $16.6 million from $1.3 billion at issuance. Interest shortfalls are currently affecting class J.

The two largest loans in the pool representing 70.3% of the pool are secured by retail properties. The largest loan (44.3%) is secured by a 48,282 sf retail property in Studio City, CA. As of March 2016, the property was 99% occupied with a NOI DSCR of 1.98x. The second largest loan (26%) is secured by a 103,674 sf grocery anchored retail property in Harrisburg, PA. As of March 2016, the property was 97% occupied with a NOI DSCR of 2.07x.

The third largest loan in the pool (15.1%) is secured by a 93 pad manufactured home community located in Fairview, OR. As of YE 2015, occupancy was 100% with NOI DSCR of 1.86x. The fourth largest loan (14.6%) is secured by a 100-unit multifamily property located in Wilmington, NC. As of March 2016, occupancy was 92% with NOI DSCR of 1.30x.

RATING SENSITIVITIES

Losses are not expected on the distressed class H; however, should any loan transfer to special servicing, downgrades to the class are possible. The distressed class may also be subject to further rating actions as losses are realized.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

Fitch affirms the following classes:

--$16.2 million class H at 'CCCsf'; RE 100%;

--$0.4 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, C, D, E, F, G, 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 is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 18 Jul 2016)

https://www.fitchratings.com/site/re/884963

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/site/re/883130

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/site/re/873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1011048

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1011048

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160831006192/en/

Fitch Ratings
Primary Analyst
David Ro
Director
+1-312-368-3132
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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