TEXT-Fitch affirms LB-UBS 2002-C4

Wed Dec 5, 2012 4:40pm EST

Dec 5 - Fitch Ratings has affirmed 10 classes of LB-UBS Commercial Mortgage
Trust, series 2002-C4, commercial mortgage pass-through certificates. A detailed
list of rating actions follows at the end of this press release.

Fitch modeled losses of 9.8% of the remaining pool; expected losses on the
original pool balance total 2.7%, including losses already incurred. The pool
has experienced $31.6 million (2.2% of the original pool balance) in realized
losses to date. There are 13 loans left in the pool, seven (35%) of which are
specially serviced and considered Fitch Loans of Concern.

As of the November 2012 distribution date, the pool's aggregate principal
balance has been reduced by 94.8% to $75.1 million from $1.5 billion at
issuance. Interest shortfalls are currently affecting classes M, N, P, and U.

The largest loan in the pool is a pari passu portion of an A note securitized by
the fee/condominium interest comprising 556,370 square feet of office, 4,555
square feet of storage, and approximately six parking spaces at 1166 Avenue of
the Americas, a 44-story New York City office building containing approximately
1.56 million square feet (53.5% of the pool). The remaining portion of the
building is owned and leased by Marsh & McLennan and used as their headquarters.
The most recent year-end 2011 DSCR is reported at 2.84x for the A note portion.

The largest contributor to expected losses is a 496 unit multi-family building
(8.1% of the pool) located in Memphis, TN. The loan transferred to the special
servicer in April 2011 due to delinquent payments. The property is real estate
owned (REO) and the special servicer is making improvements to the property in
order to increase occupancy.

The next largest contributor to expected losses is the specially-serviced 28,092
square foot (sf) retail property located in Orem, UT (3% of the pool). The loan
transferred to the special servicer in August 2011 due to imminent default.
Counsel has been engaged to enforce remedies.

Fitch affirms the following classes:
--$1.2 million class G at 'AAAsf'; Outlook Stable;
--$12.7 million class H at 'AAAsf'; Outlook Stable;
--$12.7 million class J at 'AAsf'; Outlook Stable;
--$12.7 million class K at 'Asf'; Outlook Stable;
--$20 million class L at 'BBB-'; Outlook Negative;
--$7.3 million class M at 'Bsf'; Outlook Negative;
--$7.3 million class N at 'Csf'; RE 30%.

The Negative Outlooks on the lower rated classes are due to the concentrated
nature of the pool and the smaller class sizes of the lower tranches. Classes Q,
S, and T have been reduced to zero due to realized losses and are affirmed at
'Dsf/RE0%'. Fitch does not rate the $1.1 million class P and the $0 million
class U. The class A through F notes have paid in full. Fitch previously
withdrew the rating on the interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions
is available in the Dec. 21, 2011 report, 'Surveillance Methodology for U.S.
Fixed-Rate CMBS Transactions', which is available at 'www.fitchratings.com'
under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21,
2011).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.