Press Release|CMBS

KBRA Downgrades Five Ratings for DBUBS 2011-LC3; Withdraws All Ratings

22 Sep 2026   |   New York

Contacts

KBRA downgrades the ratings of five classes of PM certificates to D (sf) for DBUBS 2011-LC3, a CMBS conduit/fusion transaction, following realized losses taken against their respective principal balances. The losses were caused by the liquidation of the Providence Place Mall loan as reflected in the September 2026 remittance report. The PM classes were rake certificates that derived 100% of their cash flow from the non-pooled components of the Providence Place Mall loan. No other classes issued by DBUBS 2011-LC3 were rated by KBRA. Immediately following the downgrades, KBRA withdraws the ratings on Classes PM-1 through PM-5 following the reduction of their certificate balances to zero. KBRA also withdraws the C (sf) rating on Class PM-X, an interest-only certificate, following the reduction of its notional balance to zero. Class PM-X did not incur a realized loss, and all interest due to the class, including previously outstanding interest shortfalls, was paid with the September 2026 distribution.

Providence Place Mall, previously a non-performing matured asset, was liquidated for $124.3 million in August 2026. KBRA's May 2026 surveillance value was $120.2 million ($123 per sf). An appraisal dated June 2024 valued the property at $191.0 million ($195 per sf), which represented a 65.8% decrease from its $558.0 million ($569 per sf) value at securitization.

The asset was collateralized by leasehold interest in a 1.0 million sf portion of Providence Place Mall, a 1.2 million sf super-regional mall located in Providence, Rhode Island. The land underlying the property is leased from the Rhode Island Economic Development Corporation under a 99-year ground lease expiring in 2096. The whole loan, which totaled $249.9 million prior to disposition, incurred a loss of $130.5 million (42.9% loss severity).

Rating actions prior to their withdrawal:

  • Class PM-1 to D (sf) from C (sf)
  • Class PM-2 to D (sf) from C (sf)
  • Class PM-3 to D (sf) from C (sf)
  • Class PM-4 to D (sf) from C (sf)
  • Class PM-5 to D (sf) from C (sf)

Ratings withdrawn:

  • Class PM-1 to WR from D (sf)
  • Class PM-2 to WR from D (sf)
  • Class PM-3 to WR from D (sf)
  • Class PM-4 to WR (sf) from D (sf)
  • Class PM-5 to WR (sf) from D (sf)
  • Class PM-X to WR (sf) from C (sf)

To access ratings and relevant documents, click here.

Related Publication

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1017084