DBRS Places Thirteen Classes of ML-CFC Commercial Mortgage Trust 2006-1 on Under Review Negative and Notes Two Classes have Interest in Arrears

DBRS has today placed Classes AJ through M of the ML-CFC Commercial Mortgage Trust 2006-1 transaction on Under Review Negative and has noted that Classes N and P have Interest in Arrears.

• Class AJ to Under Review Negative
• Class AN-FL to Under Review Negative
• Class B to Under Review Negative
• Class C to Under Review Negative
• Class D to Under Review Negative
• Class E to Under Review Negative
• Class F to Under Review Negative
• Class G to Under Review Negative
• Class H to Under Review Negative
• Class J to Under Review Negative
• Class K to Under Review Negative
• Class L to Under Review Negative
• Class M to Under Review Negative
• Class N to CCC – Interest in Arrears
• Class P to CCC – Interest in Arrears

The changes are primarily due to the high percentage of delinquent loans and the cash flow decline and resulting negative performance of the overall pool. There are ten delinquent loans that combined represent 5.8% of the pool. Additionally there is one loan that is a performing specially serviced loan and represents 0.5% of the pool. Upon resolution of each of the specially serviced loans, DBRS is anticipating losses. DBRS will take further action once a better understanding of expected losses is achieved; a surveillance report providing additional analytical detail will be provided at that time.

The interest shortfalls to Classes N and P are a result of the appraisal reductions taken on six specially serviced, primarily Inglewood Park, 2.0% of the pool. In addition, a small amount of the recurring interest shortfalls are caused by monthly special servicing fees. To the extent that the resolution of any of these specially serviced loans results in losses less than those anticipated by the appraisal reduction, the interest shortfalls may be recoverable.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are CMBS Rating Methodology and CMBS Surveillance, which can be found on our website under Methodologies.

This is a Structured Finance rating.

This rating is based on public information.