DBRS Confirms 13 Classes of UBS-Citigroup Commercial Mortgage Trust, Series 2011-C1

DBRS has today confirmed 13 classes of UBS-Citigroup Commercial Mortgage Pass-Through Certificates, Series 2011-C1, as follows:

-- 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)

All trends are Stable.

The pool comprises 32 fixed-rate loans secured by 38 commercial properties. The transaction closed in December 2011 and, since issuance, the outstanding principal balance has been reduced by 1.6% as a result of loan amortization. As of the November 2013 remittance report, all 32 loans are reporting full-year 2012 financials with a weighted-average debt service coverage ratio (DSCR) of 1.43 times (x) and a weighted-average debt yield of 13.9%.

As of the November 2013 remittance report, there are five loans on the servicer’s watchlist, representing 8.7% of the current pool balance. Three of the loans on the servicer’s watchlist, representing 5.0% of the current pool balance, are not the on the servicer’s watchlist for performance issues. The largest loan on the servicer’s watchlist for declining performance is Prospectus ID#15 (Shops at Greenwood), representing 2.6% of the current pool balance. The loan is secured by a five-building mixed-use (retail/office) property in Greenwood Village, Colorado. The loan was added to the servicer’s watchlist in March 2013 for a low DSCR and for the guarantor’s net worth being below threshold. The DSCR has decreased to 0.79x at YE2012 from 1.30x at issuance, representing a 39.3% decrease. Several tenants have vacated the property, decreasing occupancy to 77.8% in June 2013 from 81.4% in January 2012. Given the decrease in the property’s occupancy rate since issuance, DBRS will continue to monitor this loan closely for updates regarding leasing activity.

In general, performance of the portfolio is considered to be in line with DBRS’s expectations at issuance, thereby supporting the ratings confirmations. For further information on the DBRS viewpoint for this pool, including commentary on the largest loans and additional detail on the loans on the servicer’s watchlist, please see the November 2013 Monthly Surveillance report for this transaction, which will be published shortly on the DBRS website at www.dbrs.com.

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.