DBRS Confirms the Ratings of Merrill Lynch Financial Assets Inc., Series 2007-Canada 21

DBRS has today confirmed the ratings of Merrill Lynch Financial Assets Inc., Series 2007-Canada 21 as follows:

-- Classes XP-1, XP-2, XC, A-1, and A-2 at AAA
-- Class B at AA
-- Class C at A
-- Class D at BBB
-- Class E at BBB (low)
-- Class F at BB (high)
-- Class G at BB
-- Class H at BB (low)
-- Class J at B (high)
-- Class K at B
-- Class L at B (low)

DBRS does not rate the $4,815,829 first loss piece, Class M. All trends are Stable.

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. Additionally, there is one loan in special servicing which was included in the DBRS in-depth analysis. Cumulatively, the top ten, servicer watchlisted, and specially serviced loans represent approximately 62% of the current pool balance. DBRS has run various cash flow stress scenarios where, excluding loans that were reporting YE2009 financials, 10% and 5% cash flows stresses were applied across the entire transaction. As more loans report YE2009 financials, we see that loans, on average, are reporting updated cash flows that are more stable than the stresses DBRS has applied.

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.