DBRS Confirms Two Classes of the Banc of America Re-Securitization Trust 2009-CAO Commercial Mortgage Certificate-Backed Certificates

DBRS has today confirmed two classes of Banc of America Re-Securitization Trust 2009-CAO Commercial Mortgage Certificate-Backed Certificates with Stable trends as follows:

– Class B at AAA (sf)
– Class B-IO at AAA (sf)

The transaction was originally collateralized by the beneficial ownership interests in two classes of commercial mortgage-backed bonds of the Commercial Capital Access One, Inc. Commercial Mortgage Bonds, Series 3 issuance (CAO). The underlying mortgage loans were originated between 1996 and 1998 and, as of the most recent remittance period, are secured by fee and/or leasehold interests in 45 commercial and multifamily mortgaged properties.

DBRS has confirmed the ratings based on the performance of the underlying loans and the transaction structure. Underlying transaction strengths include the significant collateral reduction of approximately 72.6% since the original issuance in 1998. The two most senior classes at issuance have been repaid in full and the credit enhancement for the remaining senior certificates has increased substantially. The underlying CMBS backing the Class B Certificates consists of the CAO Class 3B certificate, with current credit enhancement of 69.7%, compared to 26.5% at issuance in 1998.

As of the most recent remittance report, there are no delinquent or specially serviced loans. Additionally, DBRS did not have access to updated cash flows for the remaining properties in the pool. Given the lack of available updated cash flows, cash flow figures from issuance in 1998 were used to analyze the pool. DBRS also increased the probability of default on all leasehold estates, as the specific terms of the underlying ground leases were not available. Based on this analysis, DBRS believes the overall pool could sustain significant cash flow declines before losses would be realized to the Class B certificates.

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

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.