Fitch Affirms Banc of America Series 2004-4

Fitch Ratings has affirmed 22 classes of Banc of America Commercial Mortgage Inc. (BACM 2004-4) commercial mortgage pass-through certificates series 2004-4. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect sufficient credit enhancement to the remaining Fitch rated classes after consideration for expected losses and significant maturity concentration in 2014. Fitch modeled losses of 4.4% of the remaining pool; expected losses on the original pool balance total 5.3%, including $45.3 million (3.2% of the original pool balance) in realized losses to date. Fitch has designated 17 loans (24.3%) as Fitch Loans of Concern, which includes one specially serviced loan.

As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 65.99% to $440.8 million from $1.43 billion at issuance. Per the servicer reporting, eight loans (11.3% of the pool) are defeased. Interest shortfalls are currently affecting classes J through P.

The largest contributor to expected losses is the Simon - West Ridge Mall loan (14.7% of the pool), which is secured by a 413,758 square foot (sf) regional mall located in Topeka, KS. The anchor tenants include Macy's, JC Penney, Sears and Dillard's. The servicer has reported that occupancy has decreased from 85% for year-end (YE) 2011 to 83% for YE2012 and the debt service coverage ratio has also decreased from 1.28x for YE2011 to 1.22x for YE2012.

The next largest contributor to expected losses is the Alaska VA Clinic loan (1.4% of the pool), which is secured by a 98,200 sf medical office building located in Anchorage, AK. The servicer reported that occupancy has decreased from 100% for YE2011 to 47% for YE2012 and the debt service coverage ratio has also decreased from 2.95x for YE2011 to 0.50x for YE2012. The decline in debt service coverage ratio and occupancy is attributed to the single tenant VA Clinic vacating the property. The tenant vacated the space on Oct. 31, 2011, but continued paying rent through Jan. 31, 2012. The Borrower has re-leased a portion of the space and continues to market the remaining vacancies.

RATING SENSITIVITY

Fitch affirms the following classes and revises Rating Outlooks as indicated:

--$11.3 million class G at 'B-sf', Outlook to Negative from Stable;

Fitch affirms the following classes and assigns or revises REs as indicated:

--$16.2 million class H at 'CCCsf', RE 25%.

Fitch affirms the following classes as indicated:

--$226.6 million class A-6 at 'AAAsf', Outlook Stable;

--$91.1 million class A-1A at 'AAAsf', Outlook Stable;

--$35.6 million class B at 'AAAsf', Outlook Stable;

--$11.3 million class C at 'AAsf', Outlook Stable;

--$21.1 million class D at 'BBBsf', Outlook Stable;

--$9.7 million class E at 'BBB-sf', Outlook Stable;

--$16.2 million class F at 'Bsf', Outlook Stable;

--$1.6 million class J at 'Dsf', RE 0%;

--$0 class K at 'Dsf', RE 0%;

--$0 class L at 'Dsf', RE 0%;

--$0 class M at 'Dsf', RE 0%;

--$0 class N at 'Dsf', RE 0%;

--$0 class O at 'Dsf', RE 0%;

--$1.9 million class DM-A at 'A+sf', Outlook Stable;

--$4 million class DM-B at 'Asf', Outlook Stable;

--$3.2 million class DM-C at 'A-sf', Outlook Stable;

--$3.4 million class DM-D at 'BBB+sf', Outlook Stable;

--$3.6 million class DM-E at 'BBBsf', Outlook Stable;

--$3.3 million class DM-F at 'BBB-sf', Outlook Stable;

--$3.1 million class DM-G at 'BBB-sf', Outlook Stable.

Fitch previously withdrew the ratings on the interest-only class X-C and X-P certificates.

The class DM certificates are related to a non-pooled B-note secured by the Dallas Market Center. The underlying collateral is a 3 million sf trade mart property located in Dallas, TX. Fitch affirms these classes as performance of the property has remained stable with trailing six month (as of August 2013) servicer reported debt service coverage ratio (DSCR) of 4.77x and occupancy of 86% as of August 2013.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=814817

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Fitch Ratings
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David Ro
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Britt Johnson
Senior Director
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