DBRS Upgrades Two Classes and Confirms Remaining Classes of Banc of America Re-REMIC Trust 2009-UBER2

DBRS, Inc. (DBRS) has today upgraded the ratings of the following Commercial Mortgage Pass-Through Certificates (the Certificates) issued by Banc of America Re-REMIC Trust 2009-UBER2:

-- Class A-4B-3 to AAA (sf) from A (high) (sf)
-- Class A-4B-7 to AAA (sf) from A (high) (sf)

In addition, DBRS has confirmed the remaining Certificates as follows:

-- Class A-4A-B at AAA (sf)
-- Class A-4B-4 at AAA (sf)
-- Class A-4B-5 at AAA (sf)
-- Class A-4B-8 at AAA (sf)

All trends are Stable.

DBRS has also discontinued the ratings on Classes A-4A-A and A-4B-9, as those classes have been repaid in full.

The rating upgrades reflect the improved credit characteristics of the underlying commercial mortgage-backed securities (CMBS) bonds as a result of scheduled loan amortization, successful loan repayment, proceeds recovered from specially serviced loans and stabilizing cash flows on performing loans. DBRS analyzed each certificate based on the individual transaction structure and the performance of the transaction’s respective loans. DBRS modeled each transaction 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 either 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, or ran a liquidation scenario using a haircut to the latest appraisal to account for additional expenses and/or potential future value decline.

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

The ratings are dependent on the continued performance of the underlying transactions. Class A-4B-3 has a $1,080 interest shortfall, which is the result of additional trust expenses. DBRS confirmed with the trustee that the shortfall is not a result of the credit profile of the underlying CMBS bond. The DBRS ratings do not address the likelihood of additional trust fund expenses; however, DBRS has added the Interest in Arrears designation to the affected class.

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 principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.

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