BoA Large Loan Deal Downgraded

Banc of America Large Loan Inc. commercial mortgage pass-through certificates series 2001-WBM has been downgraded from Baa2 to Baa3 by Moody's Investors ServiceMoody's attributed the action to its downgrade of reinsurer Royal Indemnity Co., whose insurance financial strength rating was lowered to Baa3 by Moody's on July 4. The collateral for the certificates is a leasehold mortgage on the Waikiki Beach Marriott Resort in Honolulu. Moody's said Financial Structures Ltd. issued a debt service insurance policy that guarantees timely payment of all principal and interest on the certificates. Royal entered into a reinsurance agreement with FSL under which Royal guarantees that FSL will perform all its obligations under the primary debt service policy in a timely manner, the rating agency said.