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

DBRS Inc. (DBRS Morningstar) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2011-C1 issued by UBS-Citigroup Commercial Mortgage Trust, Series 2011-C1 as follows:

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

All trends are Stable.

The rating confirmations reflect the overall performance of the transaction, which has remained in line with DBRS Morningstar’s expectations since issuance. As of the February 2020 remittance, there has been a collateral reduction of 39.2% as a result of scheduled amortization and loan repayments with 25 loans remaining in the pool. Ten loans, representing 43.3% of the current pool balance, are fully defeased, including the largest loan, Trinity Centre (Prospectus ID#1; representing 15.8% of the pool).

Loans representing 56.8% of the pool show a YE2018 analysis in the servicer’s report. Those loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.43 times (x) and 12.3%, respectively. Loans representing 52.2% of the pool show 2019 partial year reporting with a WA DSCR of 1.26x. The largest 15 non-defeased loans (56.8% of the current pool balance) are the only remaining loans in the pool.

As of the February 2020 remittance, seven loans, representing 35.7% of the current pool balance, were on the servicer’s watchlist. Three of those loans are on the watchlist for DSCR-related issues while two loans are being monitored for occupancy declines. The sixth loan is not showing any servicer commentary to confirm the reason for the watchlist placement, but DBRS Morningstar notes the loan was previously monitored for deferred maintenance cited for the collateral property. The seventh loan was placed on the servicer’s watchlist for a life safety issue. The largest watchlisted loan, Poughkeepsie Galleria (Prospectus ID#2; 15.4% of the pool), is being monitored because of its low DSCR, which stems from declining occupancy. As of September 2019, the property was 79.0% occupied with a DSCR of 0.92x. The loan has also been placed on the DBRS Morningstar Hotlist; for further information, please see the loan commentary on the DBRS Viewpoint platform, for which information has been provided, below.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Classes X-A and X-B are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#2 – Poughkeepsie Galleria (15.4% of the pool)
-- Prospectus ID#9 – Marriott Buffalo Niagara (5.4% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com. The platform includes issuer and servicer data for most outstanding CMBS transactions (including non-DBRS Morningstar-rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

Notes:
The principal methodology is the North American CMBS Surveillance Methodology, which can be found on www.dbrsmorningstar.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on www.dbrsmorningstar.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at [email protected].

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883/dbrs-morningstar-provides-update-on-rating-methodologies-in-light-of-measures-to-contain-coronavirus-disease-covid-19.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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