DBRS Upgds Three Classes of N-45 2001-1, Conf Three Classes

Dominion Bond Rating Service (“DBRS”) has today upgraded the ratings of three classes of N-45° First CMBS Issuer Corporation’s Commercial Mortgage-Backed Bonds, Series 2001-1, which were previously placed “Under Review with Positive Implications” on August 10, 2005. The classes that have been upgraded are as follows: Class B to AAA from AA, Class C to AA from “A”, and Class D to “A” from BBB. In addition, three classes were confirmed: Classes A and IO at AAA, and Class E at BBB (low). The subordinate Class F is not rated by DBRS. The trends are Stable.

The upgrades reflect stable financial performance of the collateral properties and increased credit enhancement due to the prepayment of the largest loan in the pool at issuance, The Bell Trinity Square.

DBRS notes that the transaction consists of eight commercial mortgage loans totalling Cdn$192,003,533, collateralized by five properties. The Bell Trinity Square loan (41.1% of the pool at issuance), prepaid in August 2005, significantly alters the concentration of the pool and the improves credit enhancement levels. The pool, which was originally 75.9% concentrated with office properties in Toronto, now has only 60% of the balance in Toronto office properties, and the remaining 40% of the balance in retail properties located in the province of Québec.

The average term to maturity for the pool is 59 months; however, the largest loan currently, Atrium on Bay (41% of the current pool balance), matures in December 2005. DBRS expects this loan to refinance, further improving the credit enhancement to the classes, but also leaving a pool concentrated in retail properties located in the province of Québec. Financial performance is stable and the weighted-average net operating income (NOI) debt service coverage ratio is 1.82 times (x), compared to 1.83x at issuance. Leverage on the remaining loans is low; with a current weighted-average loan-to-value of 50.7% (assuming the original appraisal value).

DBRS’s performance update provides the latest analytical data on the transaction, within the confines of the latest financial information available, including performance information on each loan. DBRS will update this report accordingly as more information becomes available.