OREANDA-NEWS. Fitch Ratings upgrades three classes and affirms eight classes of LB-UBS Commercial Mortgage Trust (LBUBS) commercial mortgage pass-through certificates series 2005-C5. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS
The upgrades are a result of continued paydown in association with loan maturities and continued amortization since Fitch's last rating action. As pool concentration is increasing, with only 20 loans remaining, Fitch used a deterministic stress scenario in its analysis.

Fitch modeled losses of 34.4% of the remaining pool; expected losses on the original pool balance total 3.7%, including $14.5 million (0.6% of the original pool balance) in realized losses to date. Fitch has designated 13 loans (73.3%) as Fitch Loans of Concern, which includes seven specially serviced assets (17.7%).

As of the March 2016 distribution date, the pool's aggregate principal balance has been reduced by 91.2% to $207.3 million from $2.34 billion at issuance. Interest shortfalls are currently affecting classes K through T.

Of the original 116 loans, 20 remain, seven of which are in special servicing. The non-specially serviced loans have maturity dates in 2017 (39.8%) and 2020 (42.4%). Sixteen loans (63.3%) are fully amortizing and none of the remaining loans are defeased.

The largest contributor to expected losses is the 270 Corporate Center - A/B note loan (33.5%), which is secured by a 449,443 square foot (sf) office property, located in Germantown, MD. The largest tenants include GSA Department of Energy (19%), expiring Nov. 30, 2019, Viavi Solutions Inc (11%), expiring December 2021; ActioNet, Inc. (6%), expiring February 2020; Herrick Technology Labs (5%), expiring October 2018; and Amarex LLC (5%), expiring July 2025. As of February 2016, the property's occupancy and rent are slightly below market at 80% and $20 per sf, respectively. There is approximately 5% upcoming tenant rollover in 2016 and 7% in 2017. Per REIS as of fourth quarter 2015, the 1-270/Gaithersburg-Germantown submarket vacancy is 15% with average asking rent at $24 per sf. The loan had previously been modified into an A/B note structure and extended to July 11, 2017. Fitch's losses were based on a stressed net cash flow and assumed full loss of the modified B note.

The second largest contributor to expected losses is the specially-serviced Centre at Lake in the Hills loan (6.7%), which is secured by a 99,451 sf shopping center built in 1997 and located at Lake in the Hills, IL. The loan transferred to special servicing in May 2011 for imminent default and the property became real estate owned (REO) in March 2013. The property is anchored by a Dominick's Food Store (lease expiring 2017), which has gone dark, but continues to pay rent. The main building contains the 72,385 sf Dominick's space and 10,346 sf. of in-line small shop tenants including GNC, H&R Block, and Chazio's Hair Salon. The second building is located to the north on Randall Road and contains 16,720 sf of space. Tenants in this building include Einstein Brothers Bagels and Jersey Mike's Subs. The property is in good overall condition with no major deferred maintenance. Per the special servicer, they have entered into eight lease renewals comprising 15,000 sf (15% of GLA) and the asset is currently not on the market. The property is 86% occupied as of February 2016 rent roll with average rent $12 per sf. Fitch's losses were based on a stressed value derived from an updated appraisal.

The third largest contributor to expected losses is the specially-serviced Lexington Commons loan (2.4%), which is secured by a 22,000 sf unanchored retail building in Glen Allen, VA (15 miles north of Richmond). The loan transferred to special servicing in July 2015 for imminent default. The largest tenants at the property include Pho Saigon (87%), expiring March 2022; Pattis Alterations (75%), whose lease expired June 2015 and are currently month-to-month; and Fantastic Sams (73%), expiring July 2018. The property is 79% occupied as of December 2015. The lender is proceeding with foreclosure. Fitch's losses were based on a stressed value derived from an updated appraisal.

RATING SENSITIVITIES
Fitch analysis employed a deterministic scenario reflecting higher loss severities on the specially serviced assets, and other loans of concern due to the pool's increasing concentration, with only 20 loans presently remaining. Further upgrades are unlikely due to concentration concerns, adverse selection, and limited near-term maturities.

DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has upgraded the following ratings and revised Rating Outlooks as indicated:

--$10 million class C to 'AAAsf' from 'AAsf'; Outlook Stable;
--$29.3 million class D to 'AAAsf' from 'Asf'; Outlook Stable;
--$23.4 million class E to 'Asf' from 'BBB-sf'; Outlook to Stable from Positive.

Fitch affirms the following classes but assigns or revises Rating Outlooks and REs as indicated:

--$29.3 million class F at 'BBsf'; Outlook to Stable from Positive;
--$26.4 million class G at 'Bsf'; Outlook to Stable from Positive;
--$23.4 million class H at 'CCCsf'; RE 75%.
--$14.7 million class J at 'CCsf'; RE 0%;
--$20.5 million class K at 'Csf'; RE 0%;
--$8.8 million class L at 'Csf'; RE 0%;
--$5.9 million class M at 'Csf'; RE 0%;
--$8.8 million class N at 'Csf'; RE 0%.

The class A-1, A-2, A-3, A-AB, A-4, A-1A, A-M, A-J and B certificates have paid in full. Fitch does not rate the class P, Q, S and T certificates. Fitch previously withdrew the ratings on the interest-only class X-CL and X-CP certificates.