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Fitch Affirms BALL 2009-FDG.

NEW YORK -- Fitch Ratings has affirmed all classes of Banc of America Large Loan, Inc. Trust 2009-FDG, commercial mortgage pass-through certificates, series 2009-FDG (BALL 2009-FDG) as follows:

--$340.2 million class A at 'AAAsf'; Outlook Stable;

--$30 million class B at 'AAsf'; Outlook Stable;

--$33 million class C at 'Asf'; Outlook Stable;

--$47 million class D at 'BBB-sf'; Outlook Stable.

The affirmations and Stable Outlooks are the result of continued stable portfolio performance. Although the portfolio-wide occupancy declined to 88% (compared to 92% at issuance), the Fitch-adjusted net cash flow has increased by 2% and the transaction has amortized by an additional $5 million since last review (totaling $9.8 million or 2.1% of the original pool balance) as of the October 2011 remittance report.

The series 2009-FDG certificates represent the beneficial interests in a single non-recourse loan secured by the fee interest in 44 office and industrial buildings, easement interests in the right-of-way along a 351-mile railroad corridor extending from Jacksonville to Miami, the fee interest in 23 parcels adjacent to the railroad corridor, and collateral assignment of interest in the leases, rents, and licenses associated with these parcels, and the collateral assignment of leases and licenses encumbering five additional parcels adjacent to the rail corridor.

Fitch analyzed the most recent financial statements and rent rolls provided by the servicer, whereby the financial statements and rent rolls were dated as of Aug. 31, 2011. The Fitch-adjusted net cash flow (NCF) increased to approximately $63 million compared to $61.9 million at issuance. The debt service coverage ratio (DSCR) for the portfolio, based on the Fitch stressed NCF and a 9.45% refinance constant, was 1.42 times (x) as of third-quarter 2011. Occupancy for the underlying operating properties ranged from 28%-100% as of the August 2011 rent roll. Lease rollovers are well-dispersed with the most concentrated near-term rollovers occurring in 2012, 2014, 2015, and 2016 at 11.9%, 12%, 12.6%, and 10%, respectively.

The fixed-rate loan has a 5.65% coupon. The loan is expected to mature in January 2017. The Fitch stressed loan-to-value (LTV) ratio is approximately 62.9% based on capitalization of the Fitch-adjusted net cash flow at a rate of 8.46%.

At issuance, the loan documents allow for potential future mezzanine debt. The owner of the borrower is permitted to pledge its equity interests in the borrower to incur up to $190 million of mezzanine debt. The additional debt is subject to LTV and DSCR ratios, among other conditions. The balance of the mezzanine debt is $70.6 million.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2011);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 26, 2011).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651703

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.
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Publication:Business Wire
Geographic Code:1U2NY
Date:Oct 26, 2011
Words:706
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