Fitch Affirms LBUBS 2003-C5

NEW YORK--()--Fitch Ratings has affirmed all classes of LB-UBS commercial mortgage trust pass-through certificates, series 2003-C5. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The pool is highly concentrated. The affirmations reflect the high credit enhancement of the classes. There are three remaining loans in the pool, one of which is defeased (15.4% of the pool) with an anticipated repayment date (ARD) of April 2018. As of the May 2014 distribution date, the pool's aggregate principal balance has been reduced by 95.8% to $59.5 million from $1.41 billion at issuance. The pool has experienced $5.5 million (0.4% of the original pool balance) in realized losses to date. Interest shortfalls are currently affecting classes L through T.

The largest loan (62.4% of the pool) and leading contributor to modeled losses is secured by a 568,657 square foot (sf) mall located in Scranton, PA. The loan was transferred to the special servicer in March 2010 and matured without repayment in July 2013. The servicer reported debt service coverage ratio (DSCR) as of June 2013 was 0.65x. The special servicer is now pursuing foreclosure.

The second largest loan (22.2% of the pool) is secured by a 256,384 sf single-tenant, office property located in Buffalo Grove, IL. The loan had an ARD of June 2013 with a final maturity of June 2033. The sole tenant's lease expires in 2016. Servicer reported DSCR was 1.59x as of year-end 2013.

RATING SENSITIVITY

The Rating Outlook of class J remains Stable as no rating change is expected. Although credit enhancement has increased the class previously experienced an interest shortfall, and is susceptible to another given the uncertain resolution surrounding the specially serviced loan and high concentration of the pool. The Outlook remains Negative for classes K and L. The distressed classes are subject to further downgrade should additional losses be realized.

Fitch affirms the following classes, Rating Outlooks, and Rating Estimates (REs) as indicated:

--$2 million class J at 'Asf; Outlook Stable;

--$14 million class K at 'BBB-sf; Outlook Negative;

--$12.3 million class L at 'Bsf'; Outlook Negative;

--$5.3 million class M at 'CCCsf'; RE 0%;

--$3.5 million class N at 'CCCsf'; RE 0%.

Fitch does not rate classes P, Q, S, and T and classes A-1, A-2, A-3, A-4, B, C, D, E, F, G, H and X-CP have paid in full. Fitch previously withdrew the rating on the interest-only class X-CL certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

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

Applicable Criteria and Related Research:

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

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013);

--'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions' (May 28, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

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

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=832037

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.

Contacts

Fitch Ratings
Primary Analyst
Tiffany Pierce
Associate Director
+1-212-908-9107
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Tiffany Pierce
Associate Director
+1-212-908-9107
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com