DBRS Confirms 13 Classes of UBS-C 2011-C1

DBRS has today confirmed 13 classes of UBS-Citigroup Commercial Mortgage Pass-Through Certificates, Series 2011-C1. All trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (high) (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (sf)
-- Class G at B (sf)

This transaction closed in December 2011 and the collateral consists of 32 fixed-rate loans secured by 38 commercial properties. At issuance, the portfolio had a balance of $673,920,599 and, as of the December 2012 remittance report, had collateral reduction of 0.81%, with all original 32 loans remaining in the pool. At issuance, the pool benefited from moderate leverage financing, with a DBRS weighted-average debt service coverage ratio (DSCR) and debt yield of 1.35x and 10%, respectively. Approximately, 87.5% of the pool is located in suburban or urban locations and benefits from relatively diverse economies.

Due to the timing of the transaction, the pool lacks full-year financial reporting and only has reported annualized figures from partial year statements. As of the December 2012 remittance report, only three loans representing 15.87% of the pool reported Q1 2012 financials, only one loan representing 7.47% of the pool reported Q2 2012 financials, and only two loans representing 21.11% of the pool reported Q3 2012 financials. In assessing the strength of the properties’ cash flow, annualized figures from partial-year statements are not considered as reliable as a full year of reporting. As such, for the purposes of this review DBRS compared the borrower’s reported NCF figure for each loan with the DBRS underwritten NCF figure to assess the performance since issuance. As no loans exhibited significant cash flow movement since issuance, DBRS modeled the DBRS underwritten NCF figure and the current outstanding trust balance for each loan.

As of the December 2012 remittance report, there are no loans on the servicer’s watchlist.

For additional details on the DBRS viewpoint for this transaction, and for details on the largest loans in the pool, please see the December 2012 Monthly Surveillance Report for this transaction, which will be published shortly.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.