Rating Raised On Merrill Lynch Mortgage Trust 2004-BPC1 Class E Certificates

  • We raised our rating on the class E certificates from Merrill Lynch Mortgage Trust 2004-BPC1, a U.S. CMBS transaction, to 'AA (sf)' from 'BB+ (sf)'.
  • The upgrade reflects our analysis of the transaction, which included a review of the credit characteristics and performance of the remaining loans in the pool, the transaction's structure, and the liquidity available to the trust.
NEW YORK (S&P Global Ratings) April 11, 2019--S&P Global Ratings today raised 
its rating on Merrill Lynch Mortgage Trust 2004-BPC1's class E commercial 
mortgage pass-through certificates to 'AA (sf)' from 'BB+ (sf)'. The deal is a 
U.S. commercial mortgage-backed securities (CMBS) transaction. 
The upgrade reflects our expectation of credit enhancement, which is in line 
with the raised rating level. 

As of the March 12, 2019, trustee remittance report, the collateral pool 
balance was $15.3 million, which is 1.2% of the pool balance at issuance. The 
pool currently includes three loans, down from 94 loans at issuance. One of 
the loans ($7.8 million, 51.1%) is on the master servicer's watchlist, and 
none of the loans are currently with the special servicer. To date, the 
transaction has experienced $79.6 million in principal losses, or 6.4% of the 
original pool trust balance. 
We calculated an S&P Global Ratings weighted average debt service coverage 
(DSC) ratio of 1.39x and an S&P Global Ratings weighted average loan-to-value 
ratio of 55.8% using an S&P Global Ratings weighted average capitalization 
rate of 8.42% for the remaining performing loans. 

The largest loan, the Courtyard Dulles Town Center loan ($7.8 million, 51.1%), 
is currently on the master servicer's watchlist. The loan is secured by a 
157-room lodging property in Sterling, Va. As of Dec. 31, 2017, the reported 
occupancy and DSC ratio were 70.6% and 1.06x, respectively. The loan is 
currently on the watchlist for performing below a 1.20x DSC ratio, which has 
been the case since origination. This loan is scheduled to mature in September 

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