OREANDA-NEWS. Fitch Ratings affirms 16 classes of Deutsche Bank Securities (DBUBS) commercial mortgage pass-through certificates series 2011-LC3. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS
The rating affirmations are based on the stable performance of the underlying collateral since issuance. Expected losses are in-line with issuance. The transaction continues to be highly concentrated with the top five and 10 largest loans accounting for 46% and 66%, respectively. Additionally, the transaction has a large hotel concentration of 19% with the second- and fourth-largest loans being secured by hotels.

There have been no delinquent or specially serviced loans in the pool since issuance. Four loans (7.4% of the pool) are defeased. Fitch has designated three Fitch Loans of Concern (9.3.%).

As of the July 2015 distribution date, the pool's aggregate principal balance has been reduced by 9.5% to \\$1.49 billion from \\$1.65 billion at issuance. Interest shortfalls are currently affecting class G.

The largest loan of concern (6.6%) is secured by a 684,563 square foot (sf) office building located in downtown Miami, FL. The building is in close proximity to the Federal and County courthouses, American Airlines Arena, and Bayfront Park. The largest tenants are Terremark Worldwide Inc (7%); Foley & Lardner LLP (5%); Broad & Cassel (4%); and Feldman Gale PA (4%). The property is 75% occupied as of March 2015 with average rent of \\$32 per square foot (psf). Per the master servicer, most of their new leases had rent concessions which eroded the effective occupancy of the property, but borrower has seen tenant demand improve and concessions lessen in recent proposals. Leasing is currently on-plan. There is 9% expected upcoming rollover in 2015. Per REIS as of first quarter 2015 (1Q15), the Miami office market Metro vacancy rate is 15.5% with asking rent \\$31.70 psf. The downtown Miami office submarket vacancy rate is 16.5% with asking rent \\$34.38 sf.

The second largest watchlisted loan (4%) is secured by a 1,289,115 sf retail center located in Providence, RI which was built in 1999 and is anchored by Macys (200,125 sf), JC Penney (116,691 sf) and Nordstrom (197,000 sf). The center also features an entertainment level with a 16-screen cinema, an IMAX theater, Dave & Buster's, and in-line specialty retailers such as Tiffany & Co., Ann Taylor, and The Apple Store. The total mall sales as of year-end (YE) 2014 were \\$341 psf and total in-line sales were \\$509 psf. It has been publicly reported, the tenant, Zara (23,500 sf) is slated to open in Oct. 2015. There is approximately 13% upcoming rollover in 2015. Per REIS as of 1Q15, the Providence retail market vacancy is 12.6 % with asking rent \\$21 psf.

As of March 2015, the property is 94% occupied. JC Penney (9% of the total mall space, not part of the collateral) has notified the borrower that they will close on their lease expiration date of Aug. 25, 2015. However, by that date the borrower General Growth Properties (GGP) must do one of the following: put \\$2.5 million into a reserve, provide a \\$2.5 million Guaranty, provide a \\$2.5 million Letter of Credit or begin sweeping excess cash until \\$2.5 million is collected. Although there is minimal expected impact to the property's net operating income from the JC Penney departure, Fitch will continue to monitor tenants with co-tenancy clauses and the re-tenanting of the JC Penney space.

RATING SENSITIVITIES
Rating Outlooks on classes A-1 through P-M5 remain Stable due to sufficient credit enhancement and continued paydown and overall stable pool performance.

Fitch has affirmed the following ratings:

--\\$624.4 million class A-2 at 'AAAsf'; Outlook Stable;
--\\$97.3 million class A-3 at 'AAAsf'; Outlook Stable;
--\\$112.1 million class A-4 at 'AAAsf'; Outlook Stable;
--\\$127.6 million class A-M at 'AAAsf'; Outlook Stable;
--Interest-only class X-A at 'AAAsf'; Outlook Stable;
--\\$75.2 million class B at 'AAsf'; Outlook Stable;
--\\$54.2 million class C at 'Asf'; Outlook Stable;
--\\$73.4 million class D at 'BBB-sf'; Outlook Stable;
--\\$19.2 million class E at 'BBsf'; Outlook Stable;
--\\$19.2 million class F at 'Bsf'; Outlook Stable;
--\\$128.5 million class PM-1 at 'AAAsf'; Outlook Stable;
--Interest-only class PM-X at 'AAAsf'; Outlook Stable;
--\\$32.9 million class PM-2 at 'AAsf'; Outlook Stable;
--\\$28.9 million class PM-3 at 'Asf'; Outlook Stable;
--\\$26.5 million class PM-4 at 'BBBsf'; Outlook Stable;
--\\$20.9 million class PM-5 at 'BBB-sf'; Outlook Stable.

The class A-1 certificates have paid in full. Fitch does not rate the interest-only class X-B or the class G certificates.