Fitch Issues Presale on DBUBS 2011-LC1 Commercial Mortgage Pass-Through Certificates

NEW YORK--()--Fitch Ratings has issued a presale report on DBUBS 2011-LC1 Commercial Mortgage Pass-Through Certificates.

Fitch expects to rate the transaction and assign Loss Severity (LS) ratings and Rating Outlooks as follows:

--$1,110,000,000 class A-1 'AAAsf/LS1'; Outlook Stable;

--$182,000,000 class A-2 'AAAsf/LS1'; Outlook Stable;

--$459,753,000 class A-3 'AAAsf/LS1'; Outlook Stable;

--$1,751,753,000* class X-A 'AAAsf'; Outlook Stable;

--$70,723,000 class B 'AAsf/LS4'; Outlook Stable;

--$81,604,000 class C 'Asf/LS4'; Outlook Stable;

--$48,962,000 class D 'BBB+sf/LS4'; Outlook Stable;

--$89,764,000 class E 'BBB-sf/LS4'; Outlook Stable;

--$24,481,000 class F 'BBsf/LS5'; Outlook Stable;

--$40,802,000 class G 'Bsf/LS5'; Outlook Stable.

*Notional amount and interest only.

The expected ratings are based on information provided by the issuer as of Oct. 6, 2010. Fitch does not rate the $68,002,872 class H or the $424,338,872 interest-only class X-B.

The certificates represent the beneficial ownership in the trust, primary assets of which are 47 loans secured by 83 commercial properties having an aggregate principal balance of approximately $2.18 billion as of the cutoff date. The loans were originated German American Capital Corporation, UBS Real Estate Securities, and Ladder Capital.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 82% of the properties by balance, cash flow analysis of 89.5% of the pool and asset summary reviews on 89.5% of the pool.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.18x, a Fitch stressed loan-to value (LTV) of 91.5%, and a Fitch debt yield of 9.67%. Fitch's aggregate net cash flow represents a variance of 5.96% to issuer cash flows and 11.6% below full-year 2009 performance.

The transaction is concentrated by loan and sponsor. The largest 10 loans account for 65.9% of the pool, and the largest 15 account for 76.8%. There is no material sponsor concentration across multiple loans.

The Master Servicer and Special Servicer will be Wells Fargo Bank, N.A. and Midland Loan Services, Inc., rated 'CMS2-' and 'CSS1', respectively, by Fitch.

The presale report is available at 'www.fitchratings.com.'

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

Applicable Criteria and Related Research:

'Global Structured Finance Rating Criteria' (Sept. 30, 2009)

'Rating Criteria for Fitch's U.S. CMBS Multiborrower Rating Model' (May 7, 2008)

'U.S. CMBS Surveillance Criteria' (Oct. 7, 2008)

'U.S. Commercial Mortgage Servicer Rating Criteria' (June 19, 2009)

'Special Purpose Vehicles in Structured Finance Transactions' (Sept. 17, 2009)

Applicable Criteria and Related Research: DBUBS 2011-LC1 (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=602448

Rating Criteria for Fitch's U.S. CMBS Multiborrower Rating Model

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=367170

CMBS Surveillance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=45155

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=555065

Special-Purpose Vehicles in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=466618

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

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Contacts

Fitch Ratings
Primary Analyst
Jonathan Teichmann, +1-212-908-0862
Associate Director
1 State Street Plaza
New York, NY 10004
or
Committee Chairperson
Eric Rothfeld, +1-212-908-0761
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
Email: sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Jonathan Teichmann, +1-212-908-0862
Associate Director
1 State Street Plaza
New York, NY 10004
or
Committee Chairperson
Eric Rothfeld, +1-212-908-0761
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
Email: sandro.scenga@fitchratings.com