DBRS Correction: DBRS Maintains MAVI Class A-2 Notes Under Review with Negative Implications

In today’s press release on Master Asset Vehicle I, DBRS inadvertently stated the rating for the Class A-2 Notes as BBB (low) in the ratings table. The correct rating for the Class A-2 Notes is “A”. The ratings table has been corrected and the full text of the press release appears below.

DBRS has today maintained the rating of the Class A-2 Notes (the Notes) issued by Master Asset Vehicle I (MAVI) Under Review with Negative Implications. The rating assigned to the MAVI Class A-1 Notes is unaffected by this action.

On August 11, 2009, DBRS placed the Notes Under Review with Negative Implications. DBRS noted in the associated press release (see the link below) that negative rating migration in the underlying asset interests held by MAVI, particularly in collateralized debt obligation transactions with relatively low levels of credit enhancement, had increased the required enhancement for the Notes. DBRS stated that if the credit quality of certain underlying asset interests continued to deteriorate, negative rating action would likely be warranted.

DBRS has been informed that extensive discussions are ongoing among relevant transaction parties to restructure certain asset interests held by MAVI in order to improve the credit quality of the Notes. The relevant transaction parties have stated an intention to complete any restructuring by early 2010.

DBRS will continue to monitor the situation closely. Further deterioration in the credit quality of certain underlying asset interests or the abandonment of restructuring discussions could necessitate negative rating action.

Notes:
The applicable methodologies are Rating Canadian Structured Credit Transactions and Canadian Structured Credit Surveillance, which can be found on our website under Methodologies.

This is a Structured Finance rating.