DBRS Finalizes Ratings for BAMLL 2011-FSHN

DBRS has today finalized the provisional ratings for the following classes of BAMLL Trust 2011-FSHN. The trends are Stable.

-- Class A at AAA (sf)
-- Class X at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (sf)

The collateral consists of a $410 million fixed-rate loan secured by Fashion Centre at Pentagon City (Fashion Centre), a super-regional mall located in Arlington, Virginia. Fashion Centre is an irreplaceable asset serving a densely populated trade area where disposable income levels are high, significantly outpacing the national average. The loan has minimal default risk during the ten-year loan term, as the DBRS term debt service coverage ratio (DSCR) is quite high at 2.14 times (x) and no individual tenant contributes more than 4.3% of base rent. In addition, historical performance has been very strong, with an average occupancy rate from 2006 through 2010 of 98.6%, including the non-collateral Nordstrom store.

The loan represents a refinancing of a loan originated in 2001 and provides a $265 million cash-out to the sponsor. Although this is a significant increase in loan proceeds, net operating income as of the trailing 12 months to March 2011 has nearly doubled since 2001 (up 93.9%). In addition, given the reported historical performance, the previous loan would have had significantly lower leverage at origination than the subject loan.

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

All classes are privately placed pursuant to Rule 144a.

The applicable methodology is CMBS Rating Methodology, which can be found on our website under Methodologies.