OREANDA-NEWS. Fitch Ratings has upgraded three classes and affirmed the remaining seven classes of DBUBS Mortgage Trust commercial mortgage pass-through certificates, series 2011-LC1. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The upgrades to classes C, D and E are based on significant paydown, as 17 loans have repaid from the trust since the last rating action. The loans were scheduled to mature in 2016, and contributed $865 million in principal repayment. Since issuance, the pool has paid down 50.3%. All loans that were originally structured with five-year terms have now repaid from the trust, limiting further principal reduction in the near term to scheduled monthly distributions. Of the 28 outstanding loans, there are only three scheduled to mature before 2020.

There were variances to criteria relating to classes D, E, F and G, where the surveillance criteria would indicate higher ratings. However, due to pool concentrations further upgrades were not warranted. The pool is concentrated by loan size, property type and sponsor. The largest 10 loans represent 81.3% of the total pool balance. Loans secured by retail properties are the most prevalent, representing 46.6% of the deal. The next highest property concentration is office, accounting for 28.1% of the pool, and loans representing 29.7% of the pool are secured by single-tenant properties. Additionally, 11.2% of the pool shares common sponsorship.

The largest loan is Kenwood Towne Centre (19.8% of the pool). It is secured by one anchor space and the inline space of a 1.2 million square-foot (sf) regional mall in Cincinnati, Ohio. The mall is owned and operated by GGP, and is anchored by Dillard's, Macy's and Nordstrom. Macy's and Nordstrom are not included as collateral for the loan. The YE2015 DSCR was reported to be 2.33x, up from 2.20x at YE2014.

The second largest loan, 7 Hanover Square (12.5% of the pool), is secured by a Class A office building in Manhattan's Financial District. The property consists of 842,415 sf of office space, 4,251 sf of ground-floor retail space and underground parking for 67 vehicles. Guardian Life, rated 'AAsf' by Fitch, occupies 100% of the office space on a lease through September 2019.

1200 K Street (11.8% of the pool) is the third largest loan and is secured by an office building in the East End neighborhood of Washington, DC. The property is located one block from Franklin Square and is within walking distance of the White House and National Mall. The government leases 97.8% of the NRA through the Pension Benefit Guaranty Corporation through December 2018. The tenant has been in occupancy of the property since 1993.

RATING SENSITIVITIES

Classes C, D and E were previously assigned Positive Outlooks. In conjunction with the upgrade of each of these classes, the Outlooks were revised to Stable. The Outlook on all of the remaining classes is also Stable. While Fitch continues to monitor the increased credit enhancement, especially to the most junior classes, upgrades could be limited given the risk associated with the concentration of single-tenant properties with leases rolling prior to loan maturity. The pool has continued to experience stable performance. While Fitch does not expect negative ratings migration, downgrades are possible should a material economic or asset level event change the transaction's pool-level metrics.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has upgraded the following classes and revised Outlooks as indicated:

--$81.6 million class C to 'AAsf' from 'Asf', Outlook to Stable from Positive;

--$49 million class D to 'Asf' from 'BBB+sf', Outlook to Stable from Positive;

--$90 million class E to 'BBBsf' from 'BBB-sf', Outlook to Stable from Positive.

Fitch has affirmed the following classes:

--$15.1 million class A-1 at 'AAAsf', Outlook Stable;

--$182 million class A-2 at 'AAAsf', Outlook Stable;

--$459.7 million class A-3 at 'AAAsf', Outlook Stable;

--$656.9* million class X-A at 'AAAsf', Outlook Stable;

--$70.7 million class B at 'AAAsf', Outlook Stable;

--$24.5 million class F at 'BBsf', Outlook Stable;

--$40.8 million class G at 'Bsf', Outlook Stable.

*Notional amount and interest only.

Fitch does not rate the class H or X-B certificates.