Moody's Affirms LB-UBS Commercial Mortgage Trust 2004-C1
Approximately $1.3 Billion of Structured Securities Affected
New York, February 07, 2008 -- Moody's Investors Service affirmed the ratings of LB-UBS
Commercial Mortgage Trust Series 2004-C1 as follows:
-Class A-1, $80,329,710 affirmed
-Class A-2, $213,000,000 affirmed
-Class A-3, $113,000,000 affirmed
-Class A-4, $751,262,000 affirmed
-Class B, $12,463,000 affirmed at Aaa
-Class C, $12,463,000 affirmed at Aaa
-Class D, $16,023,000 affirmed at Aa1
-Class E, $21,365,000 affirmed at Aa3
-Class F, $12,463,000 affirmed at A1
-Class G, $24,926,000 affirmed at A3
-Class H, $19,584,000 affirmed at Baa1
-Class J, $14,244,000 affirmed at Baa2
-Class K, $16,023,000 affirmed at Baa3
-Class L, $7,122,000 affirmed at Ba1
-Class M, $5,341,000 affirmed at Ba2
-Class N, $3,561,000 affirmed at Ba3
-Class X-CL, Notional, affirmed at Aaa
-Class X-CP, Notional, affirmed at Aaa
-Class X-ST, Notional, affirmed at Aaa
As of the January 17, 2008 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 5.4%
to $1.35 billion from $1.42 billion at securitization.
The Certificates are collateralized by 102 mortgage loans ranging in size
from less than 1.0% of the pool to 15.7% of
the pool, with the top 10 loans representing 59.8%
of the pool. The pool includes five shadow rated investment grade
loans comprising 44.3% of the pool. Twelve loans,
representing 13.3% of the pool balance, have defeased
and are collateralized by U.S. Government securities.
There are no loans in special servicing at the present time. One
loan has been liquidated from the pool resulting in realized aggregate
losses of approximately $3.7 million. Twenty five
loans, representing 13.7% of the pool, are on
the master servicer's watchlist.
Moody's was provided with year-end 2006 operating results for approximately
99.0% of the pool. Moody's loan to value ratio ("LTV")
for the conduit component is 92.5% compared to 93.6%
at Moody's last full review in November 2006 and 96.2%
The largest shadow rated loan is the UBS Center - Stamford Loan
($210.8 million - 15.6%), which
is secured by the leasehold interest in a 682,000 square foot Class
A office property located in Stamford, Connecticut. The property
is 100.0% leased to UBS AG (Moody's senior unsecured rating
Aaa - stable outlook) and serves as the US headquarters of UBS
Investment Bank. The lease is triple net and expires in December
2017. The loan is structured with a 23.75 year amortization
schedule and matures in October 2016. Moody's current shadow rating
is A3, the same as at last review and at securitization.
The second shadow rated loan is the GIC Office Portfolio Loan ($200.0
million - 14.8%), which is a pari passu interest
in a $700.0 million first mortgage loan. The loan
is secured by 12 office properties totaling 6.4 million square
feet and located in seven states including Pennsylvania (3), New
York (2), California (2), Illinois (2), Washington (1),
Wisconsin (1) and Connecticut (1). The highest geographic concentrations
are Chicago, San Francisco and suburban Philadelphia. As
of June 2007, the portfolio was 92.0% occupied,
compared to 90.6% at last review and 90.2%
at securitization. The loan matures in January 2014 and is structured
with an initial five-year interest only period after which it amortizes
at a 360 month schedule. The property is also subject to B Note
and mezzanine financing for a total debt of $900 million.
Moody's current shadow rating is A2, the same as at last review
and at securitization.
The third shadow rated loan is the MGM Tower Loan ($122.0
million - 9.1%), which is secured by a 777,000
square foot Class A office building located in the Century City office
submarket of Los Angeles, California. The property was constructed
in 2003 and was still in lease-up at securitization. As
of November 2007 the property was 97.0% leased compared
to 95.5% at last review and 77.0% at securitization.
The largest tenants are MGM (44.0% NRA; lease expiration
May 2018) and International Lease Finance Corporation (16.0%
NRA; lease expiration August 2015). The property is also encumbered
by a $86.0 million B Note. Performance has improved
due to amortization. Moody's current shadow rating is Aa1 compared
to Aa2 at last review and at securitization.
The fourth shadow rated loan is the Louis Joliet Mall Loan ($53.2
million - 3.9%), which is secured by the borrower's
interest in a 938,000 square foot regional mall (279,091 square
feet is collateral) located approximately 35 miles southwest of Chicago
in Joliet, Illinois. The mall is anchored by Macy's,
Sears, J.C. Penney and Carson Pirie Scott, all
of which own their own pads and improvements and are not part of the collateral.
Moody's current shadow rating is A3, the same as at last review
and compared to Baa3 at securitization.
The fifth shadow rated loan is the Southgate Mall Loan ($11.0
million - 0.8%), which is secured by a 473,000
square foot regional mall located in Missoula, Montana. The
mall is anchored by Dillard's, Sears and J.C. Penney.
The loan fully amortizes over a 240-month period and has paid down
23.7% since securitization. Moody's current shadow
rating is Aaa compared to Aa1 at last review and at securitization.
The top three non-defeased conduit loans represent 7.0%
of the outstanding pool balance. The largest conduit loan is the
Passaic Street Industrial Park Loan ($44.2 million -
3.3%), which is secured by 10 industrial and warehouse
properties located in Wood Ridge (Bergen County), New Jersey.
The portfolio contains 2.2 million square feet and is 70.7%
leased as of January 2008. The loan is on the master servicer's
watchlist due to low occupancy and future lease expirations. Moody's
LTV is in excess of 100.0% compared to 98.1%
at last review and 96.3% at securitization.
The second largest conduit loan is the Kurtell Medical Office Portfolio
Loan ($28.5 million - 2.1%),
which is secured by five medical office buildings and one out-patient
surgical center located in Nashville, Tennessee (5) and Orlando,
Florida. The portfolio has a total of 212,000 square feet.
Performance has improved due to an increase in effective gross income
and amortization. Moody's LTV is 91.1% compared to
99.8% at last review and 104.1% at securitization.
The third largest conduit loan is the Fountains Loan ($21.0
million -- 1.6%), which is secured by a 130,200
square foot grocery anchored retail center located in Overland Park,
Kansas. Performance has been impacted by an increase in expenses.
Moody's LTV is in excess of 100.0% compared to 96.2%
at last review and 93.5% at securitization.
Michael M. Gerdes
Senior Vice President
Structured Finance Group
Moody's Investors Service
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service