Fitch Ratings has affirmed the ratings and assigned Outlooks for all classes for Bank of America Commercial Mortgage Inc. pass-through certificates, Series 2007-4 as follows:
--$25.1 million class A-1 at 'AAA', Outlook Stable;
--$77.3 million class A-2 at 'AAA', Outlook Stable;
--$287.5 million class A-3 at 'AAA', Outlook Stable;
--$73.7 million class A-SB at 'AAA', Outlook Stable;
--$817.6 million class A-4 at 'AAA', Outlook Stable;
--$277.3 million class A-1A at 'AAA', Outlook Stable;
--$223.1 million class A-M at 'AAA', Outlook Stable;
--$178.5 million class A-J at 'AAA', Outlook Stable;
--Interest only class XW at 'AAA', Outlook Stable;
--$22.3 million class B at 'AA+', Outlook Stable;
--$19.5 million class C at 'AA', Outlook Stable;
--$22.3 million class D at 'AA-', Outlook Stable;
--$22.3 million class E at 'A+, Outlook Stable;
--$13.9 million class F at 'A', Outlook Stable;
--$16.7 million class G at 'A-', Outlook Stable;
--$27.9 million class H at 'BBB+', Outlook Negative;
--$22.3 million class J at 'BBB', Outlook Negative;
--$19.5 million class K at 'BBB-', Outlook Negative;
--$13.9 million class L at 'BB+', Outlook Negative;
--$5.6 million class M at 'BB', Outlook Negative;
--$5.6 million class N at 'BB-', Outlook Negative;
--$5.6 million class O at 'B+', Outlook Negative;
--$5.6 million class P at 'B', Outlook Negative;
--$5.6 million class Q at 'B-', Outlook Negative.
Fitch does not rate the $39 million class S.
The rating affirmations are the result of stable performance and minimal pay down since issuance in November 2007. Classes H through Q have been assigned Negative Outlooks due to the high concentration of Fitch Loans of Concern. Outlooks reflect likely rating changes over the next one to two years. As of the September 2008 distribution date, the pool's aggregate certificate balance has decreased 0.2% to $2.22 billion from $2.23 billion at issuance. In addition, approximately 97% of the pool has reported year-end 2007 financial statements with the servicer.
Fitch has identified 16 loans of concern (10.2% of the pool), one of which is a specially serviced loan (0.30%). Potential losses would be absorbed by the non-rated class S. The specially serviced loan is a 44,700 square foot (sf) unanchored, retail center located in South Fort Meyers, FL. The loan is 90+ days delinquent and the borrower has been unresponsive to servicer requests.
At issuance there was one loan in the top 10, La Jolla Executive Center (4.8%) that was in the process of stabilizing. The property has a March 31, 2008 servicer reported debt service coverage ratio (DSCR) and occupancy of approximately 0.65 times (x) and 78%, respectively. Fitch has reviewed the updated occupancy, reserve balances and cash flow information for this loan. The remaining debt service reserve contains approximately six months of payments. Given the timing of the upcoming lease rollover, it is unlikely the performance will break even before the debt service reserve is depleted. The sponsor for the loan is the Irvine Company, LLC. Fitch considers the loan a loan of concern, and will monitor the status of the reserve and leasing activity.
The Lakeside Mall (4.3%) maintains its investment-grade shadow rating. Servicer reported occupancy as of June 30, 2008 was 97.5% with a DSCR of 2.35x.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contacts:
Jeff Watzke, +1-312-606-2358
Britt
Johnson, +1-312-606-2341
Sandro Scenga, +1-212-908-0278
(Media
Relations, New York)
