BoA Large-Loan Classes Downgraded

Two classes of Banc of America Large Loan Inc.'s series 2002-FLT1 have been downgraded and removed from Rating Watch Negative by Fitch Ratings.Class H was downgraded from BBB-plus to BBB, and class J was downgraded from BBB to BB-plus. In addition, the ratings on 11 other classes in the deal were affirmed. The downgrades were attributed to a decline in performance of two loans, Windsor Court Hotel and Starrett Lehigh. The net cash flow of the former has declined 38%, and the loan is no longer considered investment-grade, Fitch said. The latter, the largest loan in the pool (21.6%), has a projected net cash flow for 2003 that is 28% lower than at issuance, the rating agency said. In a related action, Fitch downgraded two classes of Banc of America Structured Notes Inc., series 2002-1, and removed them from Rating Watch Negative. Class A was downgraded from BBB-plus to BBB, and class B was downgraded from BBB to BB-plus. The ratings on the BASN classes depend on the ratings of the underlying certificates, classes H and J of the BALL transaction. Fitch can be found on the Web at http://www.fitchratings.com.