DBRS Confirms the Ratings of Banc of America Re-REMIC Trust 2010-UBER4

DBRS has today confirmed the ratings of the following classes of Banc of America Re-REMIC Trust 2010-UBER4 Commercial Mortgage Pass-Through Certificates.

– Class A-4A at AAA (sf)
– Class A-4B at AA (high) (sf)

All trends are Stable.

The transaction is collateralized by the beneficial interests in eight commercial-mortgage backed pass-through certificates from six underlying transactions that were securitized in 2004. The transaction is a senior/subordinate pass-through, providing a sequential-pay structure intended to first allocate any potential losses to Class A-4B. The underlying certificates have been pooled together within the Banc of America Re-REMIC Trust 2010-UBER4 structure. If significant losses were to occur in one of the underlying transactions and its corresponding certificate, the losses would not be offset by the credit enhancement provided by the other underlying certificates within this trust. As such, DBRS analyzed each of the eight underlying transactions separately and rated Class A-4B to a first dollar loss scenario reflective of the lowest rating of the eight contributed classes. . Although DBRS only publicly rates one of the underlying transactions, a detailed level of analysis on each transaction was performed.

DBRS analyzed the underlying certificates based on the performance of the underlying loans and the transaction structure. DBRS modeled the transactions independently and, in its review, focused on the larger assets, the specially serviced loans and the loans on the servicer’s watchlist, in an effort to most appropriately model the pivotal loans within the transactions that carry a higher likelihood of default. To simulate realized losses expected on all delinquent loans including 30-day delinquencies, DBRS modeled these loans with 100% probability of default and the corresponding loss severity, reflective of debt yield derived by using the most recent loan level cash flow.

The resulting weighted-average credit enhancement requirements for all the loans in the underlying pools, at each respective rating category, were then compared to the actual credit enhancement provided to the contributed certificates within the underlying CMBS structures. Based on that comparison, the ratings confirmations were appropriate.

The ratings are dependent on the continued performance of the underlying deals.

The ratings do not address the likelihood of additional trust fund expenses.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are CMBS Rating Methodology and CMBS North American Surveillance Methodology, which can be found on our website under Methodologies.