Kilcoo had a bright start with two excellent points from Jerome Johnson in the opening three minutes but by the 13th minute Ballybay had drawn level with points by Shane McGuinness (free), and Hugh Malone.
Ballybay then took the lead for the only time in the game with a pointed free by Thomas Kerr in the 19th minute.
Kilcoo finished the half strongly with four unanswered points from PaulDevlin (2), Jerome Johnston and Darragh O’Hanlon to leave the Down men 0-6 to 0-3 ahead at the interval.
On the resumption Kilcoo extended their lead to four with a point byDonal Kane before efforts from Thomas Kerr and Brian McCabe brought Ballybay to within two points by the 39th minute.
From there to the finish the Down champions took control, defending in numbers and breaking quickly to register five points without reply to effectively seal the issue.
Ballybay finished the game with 14 players following the dismissal of Drew Wylie on a straight red card.
KILCOO: S Kane, N Branagan 0-1, N McEvoy, D Branagan, S O’Hanlon, A Branagan, G McEvoy, P Greenan 0-1, D Kane 0-1, J Johnston 0-4, P Devlin 0-2 (1f), D O’Hanlon 0-3 (2f), C Laverty, A Devlin, G McEvoy.
Subs: R Johnston 0-1 for A Devlin (42 mins), A McEvoy for J Johnston (58 mins), J McClean for G McEvoy, S Devlin for D Kane (both 60 mins).
BALLYBAY: S Gorman, F Smyth, D Wylie, R Wylie, E Rutledge, B McCabe 0-1, B Wylie, S McQuillan, T O’Neill, T Kerr 0-2 (2f), S McGuinness 0-2 (1f), F McArdle, H Malone 0-1, C McGuinness, C Malone.
Subs: C McAviney for F McArdle (HT), D Ward for C Malone (40 mins), P Stuart 0-1 for B McCabe (56 mins).
Referee: B Cassidy (Derry).