DBRS Confirms 14 Classes of Merrill Lynch Financial Assets Inc., Series 2003-Canada 10

DBRS has today confirmed the ratings of Merrill Lynch Financial Assets Inc., Commercial Mortgage Pass-Through Certificates, Series 2003-Canada 10 as follows:

Class A-2 at AAA (sf)
Class B at AAA (sf)
Class C at AAA (sf)
Class XC-1 at AAA (sf)
Class XC-2 at AAA (sf)
Class D-1 to AA (sf)
Class D-2 to AA (sf)
Class E-1 to A (sf)
Class E-2 to A (sf)
Class F to BBB (sf)
Class G at BB (high) (sf)
Class H at BB (sf)
Class J at B (sf)
Class K at B (low) (sf)

DBRS does not rate the $5,985,200 first loss piece, Class L. All trends are Stable.

The rating confirmations reflect the stable performance of the transaction since issuance. As of the June 2012 remittance report, approximately 34.2% of the collateral has been reduced since issuance. Additionally, nine loans, representing 26.6% of the current pool balance are defeased.

DBRS shadow-rates two loans in the transaction, Sheridan Centre (Prospectus ID#1) and Richmond Centre North (Prospectus ID#2), as investment-grade loans. DBRS has today confirmed that the performance of these loans remains consistent with investment-grade loan characteristics.

There are no loans in special servicing and there are eight loans on the servicer’s watchlist, representing 10.8% of the current pool balance.

As part of its review, DBRS analyzed the top 15 loans and the loans on the servicer’s watchlist, which comprise approximately 75.8% of the current pool balance.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report to assess any material changes at the bond or collateral level that may impact ratings. The Monthly CMBS Surveillance Report also highlights any material updates in the loans on the servicer’s watchlist and any specially serviced loans.

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

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance (May 2011), which can be found on our website under Methodologies.