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Rating Action:

Moody's Downgrades One and Affirms Four CMBS Classes of BALL2006-BIX1

20 Nov 2012

Approximately $121.5 Million of Structured Securities Affected

New York, November 20, 2012 -- Moody's Investors Service (Moody's) downgraded the rating of one notional class, affirmed one notional class and affirmed three non-pooled, or rake, classes of Banc of America Large Loan, Inc. Commercial Mortgage Pass-Through Certificates, Series 2006-BIX1 as follows:

Cl. J-CP, Affirmed at Baa3 (sf); previously on Dec 9, 2011 Upgraded to Baa3 (sf)

Cl. K-CP, Affirmed at Ba1 (sf); previously on Dec 9, 2011 Upgraded to Ba1 (sf)

Cl. L-CP, Affirmed at Ba2 (sf); previously on Dec 9, 2011 Upgraded to Ba2 (sf)

Cl. X-1B, Affirmed at B2 (sf); previously on Feb 22, 2012 Downgraded to B2 (sf)

Cl. X-4, Downgraded to B3 (sf); previously on Feb 22, 2012 Downgraded to B1 (sf)

RATINGS RATIONALE

The downgrade of notional Class X-4 is due to Moody's lower weighted average credit assessments of the two reference assets, the CarrAmerica -- Pool 3 (National Portfolio) Loan and the Ballantyne Village Loan. The affirmations of non-pooled classes J-CP, K-CP and L-CP are due to the stable performance of the CarrAmerica -- Pool 3 (National Portfolio) Loan. The affirmation of notional Class X-1B is based on the credit quality of its referenced classes.

The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. From time to time, Moody's may, if warranted, change these expectations. Performance that falls outside the given range may indicate that the collateral's credit quality is stronger or weaker than Moody's had anticipated when the related securities ratings were issued. Even so, a deviation from the expected range will not necessarily result in a rating action nor does performance within expectations preclude such actions. The decision to take (or not take) a rating action is dependent on an assessment of a range of factors including, but not exclusively, the performance metrics.

Primary sources of assumption uncertainty are the extent of growth in the current macroeconomic environment and commercial real estate property markets. Commercial real estate property values are continuing to move in a positive direction along with a rise in investment activity and stabilization in core property type performance. Limited new construction and moderate job growth have aided this improvement. However, a consistent upward trend will not be evident until the volume of investment activity steadily increases for a significant period, non-performing properties are cleared from the pipeline, and fears of a Euro area recession are abated.

The hotel sector is performing strongly with eight straight quarters of growth and the multifamily sector continues to show increases in demand with a growing renter base and declining home ownership. Slow recovery in the office sector continues with minimal additions to supply. However, office demand is closely tied to employment, where growth remains slow and employers are considering decreases in the leased space per employee. Also, primary urban markets are outperforming secondary suburban markets. Performance in the retail sector continues to be mixed with retail rents declining for the past four years, weak demand for new space and lackluster sales driven by discounting and promotions. However, rising wages and reduced unemployment, along with increased consumer confidence, is helping to spur consumer spending resulting in increased sales. Across all property sectors, the availability of debt capital continues to improve with robust securitization activity of commercial real estate loans supported by a monetary policy of low interest rates.

Moody's central global macroeconomic scenario maintains its forecast of relatively robust growth in the US and an expectation of a mild recession in the euro area for 2012. Downside risks remain significant, and elevated downside risks and their materialization could pose a serious threat to the outlook. Major downside risks include: a deeper than expected recession in the euro area; the potential for a hard landing in major emerging markets; an oil supply shock; and material fiscal tightening in the US given recent political gridlock. Healthy but below-trend growth in GDP is expected through the rest of this year and next with risks trending to the downside.

The methodologies used in this rating were "Moody's Approach to Rating CMBS Large Loan/Single Borrower Transactions" published in July 2000, and "Moody's Approach to Rating Structured Finance Interest-Only Securities" published in February 2012. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

Moody's review incorporated the use of the excel-based Large Loan Model v 8.5. The large loan model derives credit enhancement levels based on an aggregation of adjusted loan level proceeds derived from Moody's loan level LTV ratios. Major adjustments to determining proceeds include leverage, loan structure, property type, and sponsorship. These aggregated proceeds are then further adjusted for any pooling benefits associated with loan level diversity, other concentrations and correlations. The model includes the CMBS IO calculator ver1.1, which uses the following inputs to calculate the proposed IO rating based on the published methodology: original and current bond ratings and assessments; original and current bond balances grossed up for losses for all bonds the IO(s) reference(s) within the transaction; and IO type corresponding to an IO type as defined in the published methodology. The calculator then returns a calculated IO rating based on both a target and mid-point. For example, a target rating basis for a Baa3 (sf) rating is a 610 rating factor. The midpoint rating basis for a Baa3 (sf) rating is 775 (i.e. the simple average of a Baa3 (sf) rating factor of 610 and a Ba1 (sf) rating factor of 940). If the calculated IO rating factor is 700, the CMBS IO calculator ver1.1 would provide both a Baa3 (sf) and Ba1 (sf) IO indication for consideration by the rating committee.

Moody's ratings are determined by a committee process that considers both quantitative and qualitative factors. Therefore, the rating outcome may differ from the model output.

The rating action is a result of Moody's on-going surveillance of commercial mortgage backed securities (CMBS) transactions. Moody's monitors transactions on a monthly basis through a review utilizing MOST® (Moody's Surveillance Trends) Reports and a proprietary program that highlights significant credit changes that have occurred in the last month as well as cumulative changes since the last full transaction review. On a periodic basis, Moody's also performs a full transaction review that involves a rating committee and a press release. Moody's prior transaction review is summarized in a press release dated December 9, 2011. Please see the ratings tab on the issuer / entity page on moodys.com for the last rating action and the ratings history.

DEAL PERFORMANCE

As of the November 15, 2012 Payment Date the transaction's certificate balance has decreased by approximately 90% to $121.5 million from $1.2 billion at securitization due to the full payoff of 15 loans in the pool and release premiums and/or loan pay downs associated with two loans (the Blackstone/CarrAmerica -- Pool 3 (National Portfolio) loan and the JER Denver Office Portfolio Loan.

The pool to date has experienced $199 in cumulative bond losses affecting Class L and $550,664 in interest shortfalls affecting Classes J, K and L.

Moody's weighed average pooled loan to value (LTV) ratio is 86% and Moody's pooled stressed debt service coverage ratio (DSCR) is 1.62X.

The certificates are currently collateralized by three floating rate loans ranging in size from 7% to 65% of the pool balance. Two of the loans are collateralized by office properties (72%) and one is collateralized by a retail property (28%). Two loans are currently in special servicing, the Ballantyne Village Loan (28%) and the JER Denver Office Portfolio Loan (7%).

The largest loan, the CarrAmerica -- Pool 3 (National Portfolio) Loan ($72.8 million - 65% of the pooled balance) is the 40% portion of a pari-passu split loan structure that is securitized in COMM 2006-FL12 (52.5%) and CGCMT 2006-FL2 (7.5%). There is also $9.7 million of non-pooled trust debt (Classes J-CP, K-CP and L-CP), a $50.6 million non-trust subordinate secured component, and $51.6 million of mezzanine debt. The loan is currently secured by 17 office and research and development (R&D) properties. Fourteen properties containing approximately 3.7 million square feet are subject to first mortgage liens. The borrower's joint venture interests in three properties are secured by pledges of refinance and sale proceeds. The outstanding trust balance has decreased by 87% since securitization from the payment of property release premiums and from a loan modification that extended the maturity date to August 2013 and required a one-time principal pay down and contractual amortization. At securitization the loan was secured by 73 properties. The remaining portfolio has geographic concentration in California's Silicon Valley with 11 properties located in North San Jose, Sunnyvale, Santa Clara and Palo Alto. The other three properties subject to first mortgage liens are located in Los Angeles and Seattle. As of October 2012 the loan collateral secured by first mortgage liens had an average occupancy rate of 93%. Moody's credit assessment for the pooled debt is Baa2, the same as last review.

The Ballantyne Village Loan ($31.5 million -- 28%) is secured by a 166,041 square foot lifestyle retail center located in Charlotte, North Carolina. The loan was transferred to special servicing in July 2009 and was subject to an appraisal reduction in February 2012 based on an appraised value of $23.13 million. Pursuant to a Deed-in-Lieu of Foreclosure Agreement effective as of 11/01/2012, title transferred to a Special Purpose Entity subsidiary of the Trust and is now held as REO. A qualified property manager has been engaged to manage and lease the asset. The Special Servicer continues to take all necessary actions to maximize the recovery to the Trust, including requesting proposals from national brokers to list the property for sale. Moody's credit assessment is C, the same as at last review.

The JER Denver Office Portfolio Loan ($7.6 million -- 7%) is secured by office properties located in Greenwood Village (Denver), Colorado. The loan has paid down by approximately 85% since securitization from the payment of release premiums from the sale of four of the original six properties. The loan was transferred to special servicing in May 2011. The transfer was due to written correspondence from the Borrower requesting an extension and modification of the loan due to difficulty in refinancing the loan. The loan had a final maturity date of October 5, 2012. The loan is currently in a short-term forbearance to allow time for the remaining two properties to be sold. The two remaining properties, Quebec Court I and Quebec Court II contain a total of 287,294 square feet and are both 100% leased to Time Warner Telecom and Comcast Cable Communications, respectively, with lease expirations dates in October 2015 and November 2021. The $32 million whole loan includes a $24.4 million non-trust subordinate secured component. Moody's credit assessment is A1, compared to Caa1 at last review.

REGULATORY DISCLOSURES

The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Information sources used to prepare the rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's did not receive or take into account a third-party assessment on the due diligence performed regarding the underlying assets or financial instruments related to the monitoring of this transaction in the past six months.

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see the ratings disclosure page on www.moodys.com for general disclosure on potential conflicts of interests.

Please see the ratings disclosure page on www.moodys.com for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.

The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Jay Rosen
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Sandra Ruffin
VP - Senior Credit Officer
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Downgrades One and Affirms Four CMBS Classes of BALL2006-BIX1
No Related Data.
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