DBRS Upgrades Seven Classes and Confirms Four Others of Column Canada 2002-CCL1

DBRS has today upgraded the ratings of seven classes of Column Canada Issuer Corporation, Commercial Mortgage Pass-Through Certificates, Series 2002-CCL1 as follows:

-- Class C to AAA from AA
-- Class D to A (high) from A
-- Class E to A from BBB (high)
-- Class F to BBB (high) from BBB (low)
-- Class G to BBB from BB (high)
-- Class H to BB from B
-- Class J to B (high) from B (low)

DBRS has also confirmed the other classes in the transaction as follows:

-- Class A-1 at AAA
-- Class A-2 at AAA
-- Class B at AAA
-- Class A-X at AAA

DBRS does not rate the $5 million first loss piece, Class K. All trends are Stable.

The rating action reflects both a significant increase in credit enhancement caused by collateral reduction (amortization and loan maturities) and the defeasance of three loans (7.4% of the current pool balance). Additionally, there are no loans in special servicing and while there are five loans (15.8% of the pool) on the servicer’s watchlist, there are no loans on the DBRS HotList.

The DBRS analysis included an in-depth look at the top ten loans in the transaction, in addition to the loans on the servicer’s watchlist. Cumulatively, these loans represent approximately 60% of the current pool balance. DBRS has run various cash flow stress scenarios where, excluding loans that were reporting YE2009 financials, 25%, 10%, and 5% cash flows stresses were applied across the entire transaction. As more loans report YE2009 financials, we see that these cash flow stresses are not exactly reflective of the actual cash flows the assets are generating, however, in running these stressed scenarios and comparing the DBRS required credit enhancement levels to the current increased credit enhancement levels, across the transaction, the ratings upgrades are appropriate.

For further detail and loan level analysis, please refer to the corresponding Surveillance report on www.dbrs.com

Note:
All figures are in Canadian 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 CMBS rating.