News Column

Fitch Affirms 2 Classes of BAFC 2012-R4 and BAFC 2012-R5

July 11, 2014

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed two classes of notes from Banc of America Funding 2012-R4 Trust (BAFC 2012-R4) and Banc of America Funding 2012-R5 Ltd. (BAFC 2012-R5):

Banc of America Funding 2012-R4 Trust

--$195,537,489 class A notes at 'Asf', Outlook Stable;

Banc of America Funding 2012-R5 Ltd.

--$381,734,291 class A notes at 'Asf', Outlook Stable.

Fitch does not rate the class M certificates of BAFC 2012-R4 or the class M1, M2, M3, and M4 certificates of BAFC 2012-R5.

KEY RATING DRIVERS

The affirmations are attributed to the stable performance of the underlying portfolios as well as continued principal amortization over the last year.

The class A notes of BAFC 2012-R4 have received approximately $125.9 million, or 39.2% of their previous balance, in principal redemptions over the last year. This is in line with Fitch's projections at the initial rating and has led to a 10.0% increase in the notes' credit enhancement to 73.6% since last review.

The class A notes of BAFC 2012-R5 have received approximately $219.1 million, or 36.5% of their previous balance, in principal redemptions over the last year. This is in line with Fitch's projections at the initial rating and has led to a 10.3% increase in the notes' credit enhancement to 68.1% since last review.

RATING SENSITIVITIES

The ratings of the BAFC 2012-R4 and BAFC 2012-R5 class A notes remain sensitive to any potential changes of Fitch's future recovery expectations for the underlying assets.

BAFC 2012-R4 is a re-securitization of 82.6% of the class A-1 notes issued by Triaxx Prime CDO 2006-1, Ltd., with the current notional value of $652.2 million.

BAFC 2012-R5 is collateralized by 43.1% of the class A-1A notes and 96.2% of the A-1B2 notes issued by Triaxx Prime CDO 2006-2, Ltd. The classes' current outstanding balance is $337.7 million and $675.3 million, respectively.

A comparison of the transaction's Representations, Warranties, and Enforcement Mechanisms (RW&Es) to those of typical RW&Es for that asset class is available by accessing the report and link indicated below.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'Rating Criteria for Repackaged Senior Structured Finance Notes' (Aug. 02, 2013);

--'Global Rating Criteria for Structured Finance CDOs' (Sept. 12, 2013).

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' (Apr. 17, 2012).

Applicable Criteria and Related Research:

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Global Rating Criteria for Structured Finance CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718027

Rating Criteria for Repackaged Senior Structured Finance Notes

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715506

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=839163

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings, Inc.

Primary Surveillance Analyst

Geoffrey Ostosh, +1-312-368-2072

Analyst

70 West Madison St.

Chicago, Illinois 60602

or

Committee Chairperson

Alina Pak, CFA, +1-312-368-3184

Senior Director

or

Media Relations

Sandro Scenga, New York

+1-212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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