September 17, 2012 / 4:27 PM / 5 years ago

TEXT-S&P cuts 5 Banc of America Commercial 2001-PB1 ratings

Sept 17 - OVERVIEW
     -- We lowered our ratings on five classes from Banc of America Commercial 
Mortgage Inc.'s series 2001-PB1, a U.S. CMBS transaction. We lowered three of 
the ratings to 'D (sf)'.
     -- We lowered our ratings on the class N, O, and P certificates to 'D 
(sf)' due to principal losses resulting from the liquidation of one loan.
     -- The downgrades of classes L and M reflect reduced liquidity support 
available and the potential for these classes to experience interest 
shortfalls in the future. 
 
NEW YORK (Standard & Poor's) Sept. 17, 2012--Standard & Poor's Ratings 
Services today lowered its ratings on five classes of commercial mortgage 
pass-through certificates from Banc of America Commercial Mortgage Inc.'s 
series 2001-PB1, a U.S. commercial mortgage-backed securities (CMBS) 
transaction.

The downgrades of the class N, O, and P certificates to 'D (sf)' reflect 
principal losses that these classes incurred, as detailed in the Sept. 11, 
2012, trustee remittance report. According to the September 2012 trustee 
remittance report, the aggregate principal losses for the current period, 
which totaled $9.6 million, were primarily attributed to the disposition of 
the Village Plaza asset. The asset had an aggregate beginning scheduled 
principal balance of $12.9 million and was liquidated in September at a loss 
severity of 74.5%. Consequently, class N incurred a 0.8% loss of its $11.7 
million beginning principal balance, and classes P and O incurred principal 
losses that reduced their respective balances to zero. 

We lowered our ratings on the class L and M certificates to reflect reduced 
liquidity support available and the potential for these classes to experience 
interest shortfalls in the future related to the specially serviced assets. 
According to the September 2012 remittance report, the trust experienced 
interest shortfalls due to interest not advanced ($95,790)and special 
servicing fees ($3,284) on the four ($15.3 million, 59.4%) assets with the 
special servicer, C-III Asset Management LLC. The interest shortfalls were 
offset by a one-time recovery totaling $175,796 associated with the 
liquidation of the Village Plaza asset. As a result, the trust experienced a 
net repayment of accumulated interest shortfalls totaling $79,308. Prior to 
the liquidation, accumulated interest shortfalls had affected all classes 
subordinate to and including class M. ARAs totaling $4.7 million were in 
effect for the four loans. Standard & Poor's expects the interest reductions 
due to nonrecoverability determinations made with respect to the four 
specially serviced loans and special servicing fees to continue for the 
foreseeable future.

STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating 
relating to an asset-backed security as defined in the Rule, to include a 
description of the representations, warranties and enforcement mechanisms 
available to investors and a description of how they differ from the 
representations, warranties and enforcement mechanisms in issuances of similar 
securities. The Rule applies to in-scope securities initially rated (including 
preliminary ratings) on or after Sept. 26, 2011. 

If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this 
credit rating report is available atRELATED CRITERIA AND RESEARCH

     -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
     -- Principles Of Credit Ratings, Feb. 16, 2011 
 
 
RATINGS LOWERED

Banc of America Commercial Mortgage Inc. 
Commercial mortgage pass-through certificates series 2001-PB1
                                           Reported
          Rating           Credit      interest shortfalls
Class To         From     enhcmt(%)  Current  Accumulated
L     B(sf)      BBB-(sf)     72.36         0           0
M     CCC (sf)   BB-(sf)      45.09   (36,065)          0
N     D(sf)      CCC+(sf)         0   (91,960)     23,859
O     D(sf)      CCC-(sf)         0    24,044     101,202
P     D(sf)      CCC-(sf)         0    24,044     192,348

0 : 0
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