Fitch Ratings has issued a presale report on Deutsche Bank Securities DBUBS 2011-LC3 commercial mortgage pass-through certificates:
Fitch expects to rate the transaction and assign ratings and Outlooks as follows:
--$97,779,000 class A-1 'AAAsf'; Outlook Stable;
--$571,771,000 class A-2FX 'AAAsf'; Outlook Stable;
--$100,000,000 class A-2FL* 'AAAsf'; Outlook Stable;
--$0 class A-2C 'AAAsf'; Outlook Stable;
--$97,268,000 class A-3 'AAAsf'; Outlook Stable;
--$112,102,000 class A-4 'AAAsf'; Outlook Stable;
--$1,106,529,000** class X-A 'AAAsf'; Outlook Stable;
--$127,609,000 class A-M 'AAAsf'; Outlook Stable;
--$75,167,000 class B 'AAsf'; Outlook Stable;
--$54,190,000 class C 'Asf'; Outlook Stable;
--$73,419,000 class D'BBB-sf'; Outlook Stable;
--$19,229,000 class E 'BBsf'; Outlook Stable;
--$19,229,000 class F 'Bsf'; Outlook Stable;
--$140,100,000 class PM-1 'AAAsf'; Outlook Stable.
--$227,840,366** class PM-X 'AAsf'; Outlook Stable;
--$32,900,000 class PM-2 'AAsf'; Outlook Stable;
--$28,900,000 class PM-3 'Asf'; Outlook Stable;
--$26,500,000 class PM-4 'BBBsf'; Outlook Stable;
--$21,700,000 class PM-5 'BBB-sf'; Outlook Stable;
--$4,163,092 class PM-6 'BBsf'; Outlook Stable.
*Floating Rate (The aggregate balance of class A-2FL may be adjusted as a result of the exchange of all or a portion of the class A-2FL certificates for A-2C certificates, which have a balance of $0 at closing.)
**Notional amount and interest only
The expected ratings are based on information provided by the issuer as of Aug. 8, 2011. Fitch does not expect to rate the $291,928,485 interest-only class X-B or the $50,694,485 class G.
The certificates represent the beneficial ownership in the trust, primary assets of which are 43 loans secured by 64 commercial properties having an aggregate pooled principal balance of approximately $1.4 billion as of the cutoff date. The loans were sold by German American Capital Corporation., UBS Real Estate Securities, Ladder Capital Finance LLC, and Starwood Property Mortgage.
Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 72.7% of the properties by balance, cash flow analysis of 84.8% of the pool and asset summary reviews of 86.5% of the pool.
The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.34 times (x), a Fitch stressed loan-to value (LTV) of 91.9%, and a Fitch debt yield of 12.7%. Fitch's aggregate net cash flow represents a variance of 6.3% to issuer cash flows.
The Master Servicer and Special Servicer will be Wells Fargo 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', dated Aug. 4, 2011;
--'Rating Criteria for Fitch's U.S. CMBS Multiborrower Rating Model' dated Jan. 4, 2008;
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' dated Nov. 17, 2010;
--'U.S. Commercial Mortgage Servicer Rating Criteria' dated Sept. 10, 2010;
--'U.S. Commercial Mortgage Originator Review Criteria' dated April 24, 2009;
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' dated Sept. 27, 2010.
Applicable Criteria and Related Research: DBUBS 2011-LC3 (US CMBS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648803
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=574208
U.S. Commercial Mortgage Servicer Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005
U.S. Commercial Mortgage Originator Review Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=434250
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=560805
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
Rating Criteria for Fitch's U.S. CMBS Multiborrower Rating Model
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=367170
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