Fitch Downgrades One Class of BALL 2009-UBER2

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has downgraded one class and affirmed 10 classes of Bank of America Large Loan, Inc. (BALL) commercial mortgage certificate-backed certificates series 2009-UBER2. A full list of rating actions follows at the end of this ratings action commentary.

KEY RATING DRIVERS

The downgrade reflects Fitch's analysis of the underlying A-4B bond of the CMLT 2008-LS1 transaction, which serves as collateral for the subordinate stand alone A-4B-5 re-REMIC bond. The underlying A-4B bond credit characteristics have deteriorated due to an increase in expected losses on the specially serviced loans. Credit characteristics are now consistent with 'A'.

This transaction is a resecuritization of the ownership interest in nine commercial mortgage-backed certificates. The transaction consists of two pooled senior re-REMIC bond groups backed by five underlying transactions each, one senior re-REMIC bond backed by one underlying transaction and nine subordinate standalone re-REMIC bonds backed by nine separate underlying transactions.

Of the Re-REMIC transaction's nine underlying bonds, six (BSCM 2007-PWR15 A-4, JPMC 2007-LDP11 A-4, WBCMT 2007-C33 A-4, CMLT 2008-LS1 A-4B, LBCMT 2007-C3 A-4, and MSCI 2007-IQ14 A-4) are not rated by Fitch and three (MSCI 2007-HQ13 A-3, BACM 2007-2 A-4 and BACM 2007-3 A-4) are rated by Fitch. For purposes of this review, the non-rated transactions were re-analyzed adhering to the criteria from U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria.

The resecuritizations balance has been reduced to $284.23 million from $303.23 million due to partial principal paydown for five of the underlying transactions (BSCM2007-PW15 A-4, BACM 2007-3 A-4, WBCMT 2007-C33 A-4, CMLT 2008-LS1 A-4B, and LBCMT 2007-C3 A-4) supporting the senior classes (A-4A-A, A-4A-B and A-4A-C). Credit enhancement for the senior classes A-4A-A, A-4A-B and A-4A-C are approximately 50% and are provided by the underlying bonds and subordinate certificates. The subordinate A-4B-1 through the A-4B-9 classes each have approximately 30% credit enhancement provided by the structural support of the underlying transactions. Losses on any mortgage loan will be allocated first to the lowest rated class of the mortgage loan's respective series. A potential risk posed by the unpooled junior series is that the pooled senior classes may experience losses while other loan-specific junior series classes remain outstanding.

The following commercial mortgage-backed securities, in order of size, are collateral for the re-REMIC securities:

--Bear Stearns Commercial Mortgage Securities Trust 2007-PWR15: 6.9% interest in the class A-4, in the amount of $56,830,950. This transaction was not rated by Fitch. The underlying class A4 has approximately 30.32% credit enhancement. This transaction serves as collateral for classes A-4A-A, A-4A-C and A-4B-1.

--Banc of America Commercial Mortgage Trust 2007-3: 6.4% interest in the class A-4, in the amount of $60,783,389. Fitch affirmed the class A-4 at 'AAA' with a Stable Outlook on September 11, 2015. The underlying class A4 has approximately 38.3% credit enhancement. This transaction serves as collateral for classes A-4A-A, A-4A-B and A-4B-2.

--J.P. Morgan Chase Commercial Mortgage Securities Trust 2007-LDP11: 3.3% interest in the class A-4, in the amount of $39,268,000. This transaction is not rated by Fitch. The underlying class A4 has approximately 33.4% credit enhancement. This transaction serves as collateral for classes A-4A-A and A-4B-3.

--Wachovia Bank Commercial Mortgage Trust, Series 2007-C33: 3.4% interest in the class A-4, in the amount of $32,121,330. This transaction is not rated by Fitch. The underlying class A-4 has approximately 42% credit enhancement. This transaction serves as collateral for classes A-4A-A and A-4B-4.

--Commercial Mortgage Loan Trust 2008-LS1: 3.7% interest in the class A-4B, in the amount of $27,176,682. This transaction is not rated by Fitch. The class underlying A-4B has approximately 35.75% credit enhancement. This transaction serves as collateral for classes A-4A-B and A-4B-5.

--Banc of America Commercial Mortgage Trust 2007-2: 4.9% interest in the class A-4, in the amount of $29,217,000. Fitch affirmed the class A-4 at 'AAA' with a Stable Outlook on January 15, 2015. The underlying class A-4 has approximately 46.2% credit enhancement. This transaction serves as collateral for classes A-4A-B and A-4B-6.

--Morgan Stanley Capital I Trust 2007-HQ13: 5% interest in the class A-3, in the amount of $16,575,000. Fitch affirmed the class A-3 at 'A' and revised the Outlook to Stable from Negative on April 2, 2015. The underlying class A-3 has approximately 25.5% credit enhancement. This transaction serves as collateral for classes A-4A-B and A-4B-7.

--LB Commercial Mortgage Trust 2007-C3: 2.2% interest in the class A-4, in the amount of $12,257,321. This transaction is not rated by Fitch. The underlying class A-4 has approximately 38.2% credit enhancement. This transaction serves as collateral for classes A-4A-B and A-4B-8.

--Morgan Stanley Capital I Trust 2007-IQ14: 0.9% interest in the Class A-4, in the amount of $10,000,000. This transaction is not rated by Fitch. The underlying class A-4 has approximately 35.1% credit enhancement. This transaction serves as collateral for classes A-4A-A and A-4B-9.

RATING SENSITIVITIES

The Rating Outlooks on classes A-4A-B and class A-4B-7 were revised to Stable, which reflects continued principal paydown on the underlying transactions, as well as better recoveries than Fitch previously expected on loans liquidated in the underlying pools. In addition the revised Outlooks reflect a reduced risk for future interest shortfalls on the re-REMIC classes. The Outlook for the underlying security for class A-4B-7 re-REMIC bond was revised to Stable from Negative at Fitch's most recent review of the MSCI 2007-HQ13 transaction on April 2, 2015. For more information on the underlying securities, please see 'Fitch Upgrades One Class in MSCI 2007-HQ' (April 2, 2015), 'Fitch Affirms BACM 2007-2' (Jan. 15, 2015), and 'Fitch Upgrades 5 Classes of BACM 2007-3' (Sep. 11, 2015), which are all available at 'www.fitchratings.com'.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has downgraded the following rating:

--$7.5 million class A-4B-5 to 'Asf' from 'AAAsf'; Outlook Stable.

Fitch has affirmed the following ratings and revises Rating Outlooks as indicated:

--$97.2 million class A-4A-A at 'AAAsf'; Outlook Stable;

--$82.3 million class A-4A-B at 'AAAsf'; Outlook to Stable from Negative;

--$19.5 million class A-4A-C at 'AAAsf'; Outlook Stable;

--$19 million class A-4B-1 at 'AAAsf'; Outlook Stable;

--$18.6 million class A-4B-2 at 'AAAsf'; Outlook Stable;

--$9.5 million class A-4B-4 at 'AAAsf'; Outlook Stable;

--$8.3 million class A-4B-6 at 'AAAsf'; Outlook Stable;

--$4.7 million class A-4B-7 at 'Asf'; Outlook to Stable from Negative;

--$3.6 million class A-4B-8 at 'AAAsf'; Outlook Stable;

--$2.8 million class A-4B-9 at 'Asf'; Outlook Stable.

Fitch does not rate the $11.1 million class A-4B-3.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=990969

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=990969

Endorsement Policy

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

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150917006583/en/

Fitch Ratings
Primary Analyst
Benson Thomas, +1-212-908-0645
Director
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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