Moody's Upgrades Six Classes of COMM 2003-LNB1
Approximately $813.4 Million of Structured Securities Affected
New York, February 02, 2007 -- Moody's Investors Service upgraded the ratings of six classes and
affirmed the ratings of 12 classes of COMM 2003-LNB1, Commercial
Mortgage Pass-Through Certificates as follows:
Class A-1, $131,749,815, Fixed,
affirmed at Aaa
Class A-1A, $174,470,660, Fixed,
affirmed at Aaa
Class A-2, $347,583,000, Fixed,
affirmed at Aaa
Class X-1, Notional, affirmed at Aaa
Class X-2, Notional, affirmed at Aaa
Class B, $28,553,000, Fixed, upgraded
to Aaa from Aa2
Class C, $12,691,000, Fixed, upgraded
to Aaa from Aa3
Class D, $19,036,000, Fixed, upgraded
to Aa3 from A2
Class E, $10,575,000, Fixed, upgraded
to A1 from A3
Class F, $10,576,000, Other Non-Fixed,
upgraded to A3 from Baa1
Class G, $8,460,000, Other Non-Fixed,
upgraded to Baa1 from Baa2
Class H, $12,691,000, Other Non-Fixed,
affirmed at Baa3
Class J, $16,921,000, Other Non-Fixed,
affirmed at Ba1
Class K, $4,230,000, Other Non-Fixed,
affirmed at Ba2
Class L, $5,287,000, Other Non-Fixed,
affirmed at Ba3
Class M, $4,231,000, Other Non-Fixed,
affirmed at B1
Class N, $4,230,000, Other Non-Fixed,
affirmed at B2
Class O, $3,172,000, Other Non-Fixed
, affirmed at B3
As of the January 10, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 4.6%
to $807.1 million from $846.0 million at securitization.
The Certificates are collateralized by 92 mortgage loans ranging in size
from less than 1.0% to 8.1% of the pool,
with the 10 largest loans representing 48.4% of the pool.
The pool includes four shadow rated investment grade loans, representing
24.6% of the pool. Nine loans, representing
13.0% of the pool, have defeased and are secured by
U.S. Government securities.
No loans have been liquidated from the pool. Currently there are
three loans, representing less than 1.0% of the pool,
in special servicing. Moody's projects aggregate losses of
approximately $2.5 million from the specially serviced loans.
Fourteen loans, representing 7.6% of the pool,
are on the master servicer's watchlist.
Moody's was provided with full-year 2005 and partial 2006 operating
results for 97.5% and 92.2%, respectively,
of the pool. Moody's loan to value ratio ("LTV") for the conduit
component is 91.9%, compared to 93.2%
at securitization. Moody's is upgrading Classes B,
C, D, E, F and G due to stable overall pool performance,
defeasance and increased credit support.
The largest shadow rated loan is the 75 Rockefeller Plaza Loan ($65.0
million -- 8.1%), which is secured by a 578,2000
square foot office building that is part of the Rockefeller Center complex
in New York City. The property is 100.0% leased to
Time Warner Companies Inc. (Moody's senior unsecured rating
Baa2; stable outlook) under a 21-year triple net lease that
is coterminous with the loan maturity (August 2014). The loan is
interest only for its entire term. Moody's current shadow rating
is A3, the same as at securitization.
The second shadow rated loan is the Westfield Shoppingtown Portfolio Loan
($56.8 million -- 7.0%), which
represents a 33.9% pari passu interest in a first mortgage
loan secured by the borrower's interest in two regional malls located
in California. The loan sponsor is Westfield America, Inc.,
a publicly traded REIT. Both centers reflect a middle to upper
middle-market price orientation. Westfield Shoppingtown
Galleria at Roseville Mall is a 1.0 million square foot center
anchored by Macy's, Nordstrom, J.C. Penney
and Sears. Westfield Shoppingtown Main Place Mall is a 1.1
million square foot center that is anchored by Macy's and Nordstrom.
At securitization this center also included two Robinsons-May stores,
but they both closed in March 2006 following the merger of Federated Department
Stores and Robinsons-May parent, The May Department Stores
Company. Moody's current shadow rating is Aa2, the same as
at securitization.
The third shadow rated loan is the Chandler Fashion Center Loan ($51.1
million -- 6.3%), which represents a 49.0%
pari passu interest in a first mortgage loan secured by the borrower's
interest in a 1.3 million square foot super-regional mall
located approximately 18 miles southeast of downtown Phoenix in Chandler,
Arizona. The center includes an open-air village component
and reflects a middle to upper middle-market price orientation.
The center is anchored by Dillard's, Macy's, Nordstrom
and Sears. The loan sponsor is the Macerich Company, a publicly
traded REIT. Moody's current shadow rating is Aa1, compared
to Aa2 at securitization.
The fourth shadow rated loan is the 1669 Collins Avenue Loan ($25.6
million -- 3.2%), which is secured by the leased
fee interest in the land under the Ritz-Carlton Hotel in South
Beach, Florida. Moody's current shadow rating is Aa1,
the same as at securitization.
The top three conduit loans represent 13.2% of the outstanding
pool balance. The largest conduit loan is the Gateway Center BJ's
Loan ($43.2 million - 5.3%),
which is secured by a 152,500 square foot portion of a 640,000
square community center located in Brooklyn, New York. The
collateral is 100.0% leased to BJ's Wholesale Club
(85.0% GLA; lease expiration 2017) and several restaurant
tenants. The property is shadow anchored by Home Depot, Target,
Bed Bath & Beyond and Marshall's. Moody's LTV is 89.8%,
compared to 93.2% at securitization.
The second largest conduit loan is the Palladium at Birmingham Loan ($37.2
million - 4.6%), which is secured by two retail
properties in Birmingham, Michigan. The properties total
150,000 square feet. Palladium Retail is a 124,500
square foot entertainment/retail center. Willits Retail consists
of three ground-floor condominium units that total 25,400
square feet. The two properties are 100.0% occupied.
Moody's LTV is 94.5%, compared to 99.2%
at securitization.
The third largest conduit loan is the Redland Center Loan ($26.7
million -- 3.3%), which is secured by a 134,000
square foot office condominium located in Rockville, Maryland.
The property is 100.0% leased to the General Services Administration
for a 10-year term that expires in March 2013. The property
is occupied by the Department of Health and Human Services. Moody's
LTV is 94.9%, compared to 99.6% at securitization.
The pool's collateral is a mix of retail (35.1%),
office (19.3%), multifamily (16.9%),
U.S. Government securities (13.0%),
industrial (5.7%), land (3.2%),
CTL (2.7%), mixed use (2.0%),
lodging (1.5%) and healthcare (0.6%).
The collateral properties are located in 30 states. The highest
state concentrations are New York (13.7%), Georgia
(9.0%), Michigan (8.7%), California
(7.9%) and Pennsylvania (5.6%). All
the loans are fixed rate.
New York
Tad Philipp
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Sandra Ruffin
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653