Fitch Upgrades LB-UBS 2001-C3.

CHICAGO -- Fitch Ratings upgrades the following classes of Lehman Brothers -- UBS Commercial Mortgage Trust 2001-C3 pass-through certificates:

-- $55.2 million class B to 'AAA' from 'AA';

-- $44.7 million class C to 'A+' from 'A';

-- $16.0 million class D to 'A' from 'A-';

-- $18.0 million class E to 'A-' from 'BBB+';

-- $18.0 million class F to 'BBB+' from 'BBB';

-- $12.1 million class G to 'BBB' from 'BBB-'.

In addition Fitch affirms the following:

-- $252.6 million class A-1 at 'AAA';

-- $781 million class A-2 at 'AAA';

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

Fitch does not rate the following classes:

-- $15.5 million class H;

-- $20.7 million class J;

-- $6.9 million class K;

-- $10.4 million class L;

-- $3.5 million class M;

-- $6.9 million class N;

-- $3.5 million class P;

-- $17.2 million class Q.

The upgrades are due to defeasance of 8.8% of the pool since Fitch's last rating action, an increase in credit enhancement since issuance, and levels that are in line with the subordination levels of deals issued today with similar characteristics. As of the April 2006 distribution date, the pool's aggregate principal balance had decreased by 7.1% to $1.28 billion from $1.38 billion at issuance.

There are currently five assets (3.0%) in special servicing of which losses are expected on four. The Fitch expected losses are anticipated to be absorbed by class Q. The largest specially serviced asset (1.4%) is a portfolio that contains two hotels with 316 rooms in Houston, TX. The asset was liquidated by the special servicer on April 14, 2006 at a loss to the trust which will be reflected on the May 2006 trustee distribution statement.

Fitch reviewed servicer-provided financial statements for the five credit assessed loans that comprise 36.2% of the pool: The Chrysler Building (13.7%), Cape Cod Mall (7.4%), Vista Ridge Mall (6.6%), Westlake Center (5.3%), and Shoppingtown Mall (3.3%). Based on their stable performance, Fitch maintains investment grade credit assessments for all of them.

The Chrysler Building loan (13.7%) is secured by a 77-story, 1.2 million square foot (sf) class A office building located in midtown Manhattan, NY. As of April 2006 the whole loan balance was $213.8 million, consisting of an A/B note structure with a $173.8 million A note and a $40 million B note held outside of the trust. The building had a 96% occupancy rate as of year-end (YE) 2005, compared to a 98% occupancy rate at issuance. Fitch's adjusted debt service coverage ratio (DSCR) as of YE 2005 was 1.53 times (x), compared to 1.80x at issuance. The decline in DSCR since issuance is due to increases in operating expenses over the years, especially real estate taxes, insurance, and utilities. The trust's exposure per square foot of $145 remains low compared to current market value. Furthermore, the asset is well located within a strong submarket. Fitch's adjusted net cash flow (NCF) is calculated using a stressed debt service based on the current loan balance and a hypothetical mortgage constant.

Cape Cod Mall (7.4%) is secured by a 727,606 sf regional mall located in Hyannis, MA. The mall has exhibited positive performance since issuance, with a YE 2005 total occupancy rate of 98% compared to 99% at issuance. Its YE 2005 servicer-provided DSCR on NCF was 1.85x, compared to 1.68x at issuance.

Vista Ridge Mall (6.6%) is secured by a 1.1 million sf regional mall located in Lewisville, TX (within the Dallas MSA). The mall has exhibited stable performance since issuance. Occupancy and servicer-reported DSCR on NCF as of September 2005 were 98% and 1.53x, respectively, compared to 98% and 1.57x at issuance.

Westlake Center (5.3%) is secured by a 453,635 sf mixed-use property located in Seattle, WA. Occupancy at the property has declined from 96% at issuance to 88% as of June 2005. Fitch is concerned about the 14% of net rentable area with lease expirations in 2006. Fitch will continue to monitor leasing activity at the property. Fitch will review the YE 2005 statements when they become available.

Shoppingtown Mall (3.3%) is secured by a 773,634 sf regional mall located in DeWitt, NY (within the Syracuse MSA). Occupancy at the property has declined from 92% at issuance to 81% as of September 2005. The mall's largest tenant, JC Penney (19%), extended its lease, which had an expiration date of June 2006, but Fitch is concerned about the additional 22% of net rentable area with lease expirations in 2006. Fitch will continue to monitor leasing activity at the property and will review the YE 2005 statements when they become available.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.