January 25, 2013 / 6:26 PM / 5 years ago

TEXT-Fitch puts LB-UBS Commercial Mortgage 2006-C7 on watch negative

Jan 25 - Fitch Ratings has placed the following class of LB-UBS Commercial
Mortgage Trust, series 2006-C7 on Rating Watch Negative:

--$302 million class A-M 'AAsf'.

The class has been placed on Rating Watch Negative based on an increase in
expected losses on loans in special servicing and deterioration in collateral
performance. An update to a recent valuation on the fifth largest loan in the
pool, currently in special servicing, indicated a significant increase in
expected losses. In addition, the most recent criteria updates reflect higher
cap-rate scenarios for multifamily and hotel loans.

Fitch expects to resolve the Rating Watch status upon a complete review of the
transaction within the next several months, and include an analysis of updated
valuations and performance data. Fitch expects class A-M could be downgraded at
least one category given the high percentage of expected losses coupled with
limited subordination of the remaining classes.

Additional information on Fitch's criteria for analyzing U.S. fixed rate CMBS is
available in the Dec. 18, 2012 report, ' U.S. Fixed-Rate Multiborrower CMBS
Surveillance and Re-REMIC Criteria,' 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);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec.
18, 2012).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
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