Reuters logo
TEXT-Fitch affirms LB 1998-C1
July 10, 2012 / 4:01 PM / 5 years ago

TEXT-Fitch affirms LB 1998-C1

July 10 - Fitch Ratings has affirmed all classes of Lehman Brothers (LB)
Commercial Mortgage Trust's commercial mortgage pass-through certificates,
series 1998-C1. A list of the ratings follows at the end of this press release.

The affirmations are a result of the pools stable performance following Fitch's
prospective review of the potential stresses to the transaction. Fitch expects
minimal losses to the remaining pool balance. As of the June 2012 distribution
date, the pool's certificate balance has been reduced 89% to $189.58 million
from $1.73 billion at issuance (which includes 2.75% in realized losses). There
are 38 of the original 260 loans remaining in the transaction. Eight loans (14%)
are fully defeased.

Fitch has identified six loans as Loans of Concern (6.6% of pool balance), which
include one loan currently in special servicing (2.1%). Interest shortfalls are
affecting classes K, L and M as of the June 2012 remittance date.

The specially serviced loan (2.1%) is secured by a 194 bed senior housing
facility in Long Beach, NY. The servicer reported occupancy at 56% as of
November 2011. The loan had transferred to special servicing in August 2009 due
to monetary default. The special servicer is dual tracking foreclosure and
working with the borrower to cure the default. The borrower is negotiating with
a new third party operator to manage the property and is seeking refinancing.

The largest loan in the pool is the Ohio Valley Plaza loan (17.26%) which is
secured by a 576,639 square foot retail property in St. Clairsville, OH. The
property is well located off interstate 70 directly across from the Ohio Valley
Mall. Anchors at the subject property include Walmart Super Center (35% net
rentable area ), Lowe's (23% NRA), and Sam's Club (20% NRA). The March 2012
rent roll reported occupancy at 98%. Debt service coverage ratio (DSCR) reported
at 1.38 times (x) for year-end December 2011.

Fitch affirms the following classes:

--$30.9 million class E at 'AAAsf'; Outlook Stable;
--$51.8 million class F at 'AAAsf'; Outlook Stable;
--$34.6 million class G at 'AAAsf'; Outlook Stable;
--$17.3 million class H at 'Asf'; Outlook Stable;
--$43.2 million class J at 'Bsf'; Outlook Stable;
--$11.8 million class K at 'Dsf'; RE 35%;
--Class L at 'Dsf'; RE 0%.

Class L and the unrated class M have been reduced to zero due to realized
losses. Classes A-1, A-2, A-3, B, C, and D have paid in full.

Fitch previously withdrew the rating on the interest-only class IO.

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 ''
under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at ''. 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,

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below