DBRS Confirms Ratings of Canada Mortgage Acceptance Corporation, Series 2006-C4

DBRS has today confirmed the ratings of the outstanding Series 2006-C4 Certificates (the Certificates) issued by Canada Mortgage Acceptance Corporation. The confirmations are part of DBRS’s continued effort to provide timely credit rating opinions and increased transparency to market participants.

-- AAA (sf) for Mortgage Pass-Through Certificates, Series 2006 - C4, Class IO-C
-- “A” (sf) for Mortgage Pass-Through Certificates, Series 2006 - C4, Class D
-- BBB (sf) for Mortgage Pass-Through Certificates, Series 2006 - C4, Class E
-- BB (sf) for Mortgage Pass-Through Certificates, Series 2006 - C4, Class F

The ratings are based on the following factors:

(1) For all the outstanding Certificates except for the IO Certificates, subordination is increasing over time as the Certificates are paid down sequentially. The lower-rated Certificates will not receive any principal repayment until the higher-rated Certificates have been fully repaid. As of January 17, 2011, 60.8% subordination was available to the Class D Certificates, 33.0% to Class E and 19.1% to Class F. The subordination for the aforementioned classes has increased from 2.55%, 1.75% and 1.35% at closing, respectively.

(2) The underlying collateral continues to perform well, incurring low cumulative losses of 0.80% (or $3.75 million) as of January 17, 2011. When a loss occurs, it is absorbed in a reverse sequential order and begins with the lowest-ranked unrated Class G Certificates. The lowest-rated Class F Notes will not be fully repaid if the cumulative loss is greater than the entire amount of Class G ($6.31 million). The cumulative loss over the remaining life of the transaction (estimated to be less than six months) is not expected to be higher than the remaining Class G amount of $2.6 million or detrimental to the ratings of the outstanding Certificates.

DBRS monitors the performance of the transaction to identify any deviation from DBRS’s expectation at issuance and to ensure that the ratings remain appropriate. The review is predicated upon the timely receipt of performance information from the related providers. The performance and characteristics of the custodial pool and the Certificates are available and updated each month in the Monthly Canadian ABS Report (see Related Research below).

For more detailed information on the transaction structure, please refer to the rating reports of the Trust at www.dbrs.com.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodologies are Canadian RMBS Methodology and Legal Criteria for Canadian Structured Finance, which are available on our website under Methodologies.