NEW YORK CITY-In a sign that troubled office loans are still shaky amid a slow economy, Fitch Ratings has downgraded four classes of commercial mortgage pass-through certificates from LB-UBS Commercial Mortgage Trust 2005-C2. The two largest contributors to the pool’s losses include loans for the Woodbury Office Portfolio I & II on Long Island and loans for the two-building Park 80 West office complex in Saddle Brook, NJ.

While four classes in the pool were downgraded, at the same time, 12 classes were affirmed. "The remainder of the bonds have stable outlooks, which indicates no downgrades to these classes," says Mary MacNeill, managing director at Fitch Ratings, in an e-mail.

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But the downgrades of the four mortgage certificates reflect an increase in expected losses across the entire pool, says Fitch, as well as update valuations on the existing specially serviced loans. The ratings agency designated 36 loans--or 68.49% of the pool balance--as loans of concern. Of that 36, 14 of the loans--or 31.71%--are specially serviced. As of their August 2011 distribution date, the pool’s aggregate principal balance has been paid down to $1.21 billion from $1.94 billion at issuance.