Fitch Upgrades Three Classes of BALL 2003-BBA2.

NEW YORK -- Fitch Ratings upgrades the following classes of Banc of America Large Loans, Inc.'s commercial mortgage pass-through certificates, series 2003-BBA2:

-- $31.1 million class E to 'AAA' from 'AA+';

-- $35.3 million class F to 'AA+' from 'AA';

-- $37.2 million class G to 'A+' from 'A'.

In addition, the following classes are affirmed:

-- $22.2 million class A2 at 'AAA';

-- $272.6 million class A3 at 'AAA';

-- $25.1 million class B at 'AAA';

-- $47.8 million class C at 'AAA';

-- $61.2 million class D at 'AAA';

-- $22.7 million class H at 'A-';

-- $23.9 million class J at 'BBB+'

-- $23.3 million class K at 'BBB-',

-- $34.0 million class L at 'BB';

-- Interest-only classes X-1A, X-1B, X-2, X-3, X-4 at 'AAA'.

Class A-1 has paid in full.

The upgrades are due to the improved performance of seven of the eight loans in the transaction based on year-end (YE) 2005 Fitch stressed net cash flow (NCF), as well as the continued payoff of loans. The remaining collateral consists of seven A-note loan portions and one whole loan. The overall debt service coverage ratio (DSCR) for the remaining loans in the pool, is 1.67 times (x) compared to 1.48x for those loans at issuance, and 1.51x for the entire transaction at issuance. All loans except the Colonnade Portfolio loan have investment grade credit assessments.

The review of all of the loans in this transaction is based on occupancy and financial information for the year ending Dec. 31, 2005.

Fitch remains concerned with the ongoing poor performance of the Colonnade Portfolio loan (24.9%). The collateral consists of office properties in Atlanta (78%); Irving, TX (15%); and Minneapolis (7 %). As of YE 2005, the Fitch stressed NCF had declined by 49% since issuance. The credit assessment on this loan remains below investment grade and Fitch will continue to closely monitor the performance of this loan.

The Gas Company Tower (36.1%), the largest loan in the transaction, is 100% occupied and had a Fitch stressed DSCR of 1.65x at YE 2005 as compared to 1.50x at issuance.

The JW Marriott hotel (11.0%) has experienced a 72% increase in NCF since issuance, bringing the YE 2005 Fitch stressed DSCR to 3.13x from 1.83x at issuance.

The California Market Center (7.7%) was 75% occupied at YE 2005, and had a YE 2005 Fitch stressed DSCR of 3.07x compared to 1.85x at issuance. Two retail properties in the transaction, Westland Mall (7.9%) and Searstown Mall (6.0%) are both performing at or above expectations since issuance. The Fitch stressed DSCR at the Westland Center has risen to 1.60x from 1.38x at issuance, and the Searstown Mall Fitch stressed DSCR at YE 2005 was 1.40x, versus 1.43x at issuance. With the recent payoff of the Independence Mall in Massachusetts, the percentage of retail collateral in the transaction had decline to 21.5% from 31.1% at issuance.

Occupancy at the Meridian Apartment property (3.0%) has increased to 93% from 89% at issuance, and the Fitch stressed DSCR at YE 2005 was 1.55x compared to 1.42x at issuance.

The Campus Lodge Apartment loan (3.5%), formerly a Fitch loan of concern, has seen an increase in occupancy to 97%, the same as at issuance. The Fitch stressed DSCR as of YE 2005 was 1.66x, up from 1.44x at issuance and 1.06x at the time of Fitch's previous review.

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