Fitch Affirms LB-UBS Commercial Mortgage Trust 2003-C5.

NEW YORK -- Fitch Ratings affirms LB-UBS commercial mortgage pass-through certificates, series 2003-C5 as follows:

-- $124.9 million class A-1 at 'AAA';

-- $503 million class A-2 at 'AAA';

-- $220 million class A-3 at 'AAA';

-- $328.1 million class A-4 at 'AAA';

-- Interest Only (I/O) class X-CL at 'AAA';

-- I/O class X-CP at 'AAA';

-- $22.8 million class B at 'AA+';

-- $24.6 million class C at 'AA';

-- $15.8 million class D at 'AA-';

-- $15.8 million class E at 'A+';

-- $22.8 million class F at 'A';

-- $17.6 million class G at 'A-';

-- $15.8 million class H at 'BBB+';

-- $10.5 million class J at 'BBB';

-- $14.1 million class K at 'BBB-';

-- $12.3 million class L at 'BB+';

-- $5.3 million class M at 'BB';

-- $3.5 million class N at 'BB-'.

Fitch does not rate class P, class Q, class S and class T.

The affirmations are due to the stable pool performance and scheduled amortization. As of the October 2004 distribution date, the pool's aggregate principal balance has decreased 4.1% to $1.39 billion from $1.41 billion at issuance. There are no delinquent or specially serviced loans.

Wachovia Securities (Wachovia) the master servicer, collected year-end (YE) 2003 operating statements for 96.6% of the transaction. The YE 2003 weighted average debt service coverage ratio (DSCR) based on net operating income (NOI) is 2.26 times (x), compared to 2.32x at issuance for the same loans.

The six credit assessed loans (44.4% of the pool) remain investment grade. Fitch reviewed operating statement analysis reports and other performance information provided by Wachovia. The DSCR for the loans are calculated based on a Fitch adjusted net cash flow (NCF) and a stressed debt service based on the current loan balance and a hypothetical mortgage constant.

The John Hancock Tower (11.5%) is secured by a 60-story class A office building containing approximately 1.7 million square feet (sf) and an adjacent 1,988-space parking garage located in Boston, MA. The whole loan as of October 2004, has an outstanding principal balance of $360 million, which is divided into a $320 million A note and a $40 million B note. The A note was further divided into three pari passu notes. Only the $160 million A-1 note serves as collateral for the subject transaction. The loan is a five year fixed-rate interest only loan. As of YE 2003 the Fitch adjusted NCF decreased 3% due to an increase in operating expenses. Occupancy as of June 2004 remained flat from issuance at 98%. The DSCR as of YE 2003 was 1.47x compared to 1.52x at issuance.

John Hancock Financial Services, Inc. (John Hancock), the largest tenant with approximately 28.6% net rentable area (NRA), recently merged with Manulife Financial Corporation (Manulife). Manulife and John Hancock are currently rated 'AA-' and 'A+' respectively by Fitch. John Hancock is actively marketing to sublet 300,000 sf (17.2% NRA). However, John Hancock remains obligated under the lease term until 2015, which is well past the loan maturity.

The special servicer, Lennar Partners, Inc., recently consented to a request from Beacon Capital Partners, LLC (the Borrower), for up to an additional $49 million in mezzanine financing which would bring the total mezzanine financing to $136 million. The additional debt will fund leasing costs associated with the renewal and expansion of two of the building's largest tenants totaling 31.9% NRA and to prepay the garage air rights lease through 2068. Although the Fitch stressed DSCR as of YE 2003, including all mezzanine financing drops to 0.95x compared to 1.09x at issuance, two of the largest four tenants' leases will have been extended well beyond debt maturity.

Westfield Shoppingtown Portfolio (11.1%) is secured by two cross-collateralized cross-defaulted regional malls. Westfield Shoppingtown Plaza Bonita consists of 429,474 sf of an 820,353 sf enclosed regional mall located in National City, CA. Westfield Shoppingtown Vancouver consists of 413,372 sf of an 883,219 sf regional mall located in Vancouver, WA. As of YE 2003 the Fitch adjusted NCF for the portfolio has remained stable since issuance, with a corresponding DSCR of 1.41x. The overall portfolio's occupancy as of July 2004 remained flat from issuance at 78.7%.

The remaining four credit assessed loans, GGP Portoflio (10%), 70 Hudson Street (6%), The Mall at Steamtown (2.9%) and Pierre Bossier Mall (2.8%) have performed at or better than issuance. The weighted average DSCR for the four remaining loans as of YE 2003 was 1.53x compared to 1.46x at issuance.