DBRS Assigns Provisional Ratings to Xceed Mortgage Trust, Series 2006-T1

Dominion Bond Rating Service (“DBRS”) has today assigned provisional ratings to the Series 2006-T1 Notes (the “Notes”) to be issued by Xceed Mortgage Trust (the “Trust”), as outlined above.

The finalization of ratings is contingent upon receipt of final documents conforming to information already received.

The ratings of the Notes are based on the following factors:
(1) The relative levels of structural enhancement for each rated class (Class A-1 and Class A-2 have 13.5% credit enhancement, Class B has 9% enhancement, Class C has 5.75%, and Class D has 2%) in addition to excess spread;
(2) A diversified pool cross-Canada with all the mortgages originated by Xceed Mortgage Corporation (“Xceed”) being first mortgages and primarily for single-family properties;
(3) Experience of senior management in non-prime mortgages; and
(4) Subordinated lender funds up to 23% loan-to-value (LTV) (21% prior to May 2005) in excess of the co-ownership interest held by the Trust for mortgages with LTV over 90%.

Constraints to the ratings are:
(1) Non-prime quality of borrowers without significant performance history; and
(2) Available excess spread could deteriorate if the actual losses and prepayment rates are higher than expected.

The collateral supporting the Notes are typically non-prime mortgages, which usually experience higher foreclosure frequency and loss severity than prime mortgages. Enhancement levels have been sized to provide for this.

Xceed focuses on providing alternative mortgage financing for the non-traditional market segments in Canada and relies on securitization as its primary source of funding. As of January 31, 2006, Xceed had Cdn$1.8 billion mortgages under administration.