DBRS Removes Interest In Arrears from Three Classes of Merrill Lynch Financial Assets Inc., Series 2001-Canada 5

DBRS has today removed the Interest in Arrears designation for Classes C, D, and E, as the outstanding interest due on those classes has been repaid as of the January 7, 2011 remittance. Classes F continues to have Interest in Arrears.

Expenses related to the May 2010 liquidation of the Ramada Coral Inn and Ramada All-Suite were included in the November 2010 remittance report, contributing to a sudden increase in interest shortfall affecting investment grade bonds. At that time, DBRS anticipated the shortfalls to Classes C, D and E would ultimately be recoverable. The January 2011 remittance shows those shortfalls have been repaid.

The ratings for Classes D and E will remain Under Review-Developing and Under Review-Negative, respectively. The rating on Class C will be confirmed at AA (low) with a Stable trend.

DBRS will continue to remain in contact with the servicer and trustee regarding the recovery of interest shortfall going forward.

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.