BALL CMBS Classes Downgraded

Two classes of Banc of America Large Loan Inc.'s series 2003-BBA2 have been downgraded and the ratings have been removed from Rating Watch Negative by Fitch Ratings.Class K has been downgraded from BBB to BBB-minus, and class L has been downgraded from BBB-minus to BB. In addition, the ratings on 15 other classes in the deal were affirmed The downgrades were attributed to the continuing poor performance of the Colonnade Portfolio loan, representing 21.7% of the pool. The collateral consists of office properties in Atlanta (78%), Irving, Texas (15%), and Minneapolis (7%). Overall occupancy in the portfolio has declined to 64% from 73% at issuance, Fitch said. "Despite the downgrade, there is protection for investors as the leverage on the property is approximately $46 per square foot, below the market value of recent comparable sale properties in these three markets," Fitch said. "Furthermore, existing subordinate debt would take first losses should the loan default and experience losses as a result of disposition." Fitch can be found online at http://www.fitchratings.com.