2008-11-14 00:37:02 -
Fitch has downgraded the following class of Banc of America Large Loan, Inc., series 2006-BIX1:
--$18.9 million class L to 'BB+' from 'BBB-'; Outlook Negative;
In addition, Fitch has affirmed the following classes:
--$221.1 million class A-2 at 'AAA'; Outlook Stable;
--Interest-only class X-1A at 'AAA'; Outlook Stable;
--Interest-only class X-1B at 'AAA'; Outlook Stable;
--Interest-only class X-2 at 'AAA'; Outlook Stable;
--Interest-only class X-3 at 'AAA'; Outlook Stable;
--Interest-only class X-4 at 'AAA'; Outlook Stable;
--Interest-only class X-5 at 'AAA'; Outlook Stable;
--$15 million class B at 'AAA'; Outlook Stable;
--$43.2 million class C at 'AAA'; Outlook
Stable;
--$42.4 million class D at 'AAA'; Outlook Stable;
--$28.3 million class E at 'AA'; Outlook Stable;
--$28.3 million class F at 'A+'; Outlook Stable;
--$28.3 million class G at 'A'; Outlook Stable;
--$28.3 million class H at 'A-'; Outlook Stable;
--$11.3 million class J at 'BBB+'; Outlook Stable;
--$11.8 million class K at 'BBB'; Outlook Stable;
--$4 million class J-CP at 'BBB+'; Outlook Stable;
--$5.9 million class K-CP at 'BBB'; Outlook Stable;
--$11.5 million class L-CP at 'BBB-'; Outlook Stable;
--$1.4 million class J-CA at 'BBB+'; Outlook Stable;
--$0.9 million class K-CA at 'BBB'; Outlook Stable;
--$1.1 million class L-CA at 'BBB-; Outlook Stable.
Classes A-1, M-MC and L-SC have paid in full.
The downgrade is due to the decline in the performance of the Bassett Place Mall and the Ballantyne Village loans. The assignment of a Negative Outlook to class L is due to the upcoming final maturity of the Bassett Place Mall loan on Jan. 4, 2009, with no further extension options available to exercise, resulting in a potential default.
The Bassett Place Mall loan's Fitch-stressed net cash flow has declined by approximately 15% since issuance based on servicer-provided year-end (YE) 2007 financial statements. The deterioration in cash flow at the property is the result of a decline in rental income. Although, occupancy has increased to 93.3% from 84.1% at issuance, the property experienced tenant rollover and was unable to achieve the same rental rates upon re-tenanting.
The Ballantyne Village loan's Fitch-stressed net cash flow has declined by approximately 27% since issuance based on servicer-provided year-end (YE) 2007 financial statements. The deterioration in cash flow at the property is the result of a decline in rental income. Although, occupancy has increased to 84% from 75% at issuance, the property experienced tenant rollover and was unable to achieve the same rental rates upon re-tenanting.
The remaining loans are stabilizing as expected and have experienced minimal paydown since the last review. As of the November 2008 distribution date, the transaction's aggregate certificate balance has decreased 59.5% to $501.6 million from $1,238.7 million at issuance. There are currently no loans in special servicing.
To date, seven loans have paid off: Lee's Summit, Wyvernwood, Midtown Centre, Hotel QT, Sterling Court, Quality Hotel Times Square and 770 Motts Street. Forty-five office properties were sold in the CarrAmerica Pool 3 and CarrAmerica Pool 2 loans and two in the JER Denver Office Portfolio loan, reducing the balance of the loans through partial release. The remaining loans in the pool have remaining extension options.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site,
cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ... 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 Ratings, New York
Greg Christoforides, 212-908-0703
Adam Fox, 212-908-0869
or
Media Relations:
Sandro Scenga, 212-908-0278
Email: mailto:sandro.scenga@fitchratings.com
