DBRS Confirms Ratings of MACH ONE 2005-CDN1, ULC

DBRS has today confirmed the ratings of MACH ONE 2005-CDN1, ULC Canadian Commercial Mortgage-Backed Securities Pass-Through Certificates (MACH ONE). Additionally, DBRS has changed the trends of Class B through Class G to Positive from Stable. DBRS does not rate the first loss piece, Class CS.

The rating confirmations and trend changes reflect the positive credit migration on the underlying Canadian commercial mortgage-backed securities (CMBS) assets, attributed to amortization, increased defeasance, loan seasoning and increased credit enhancement as a result of successful loan repayments as issuance. This performance has resulted in significant collateral reduction to the MACH ONE capital structure. Since issuance in July 2005, the transaction has amortized by 47.3%. Of the 12 original underlying CMBS transactions that were contributing to the MACH ONE transaction, the contributing classes in three transactions have paid off in full, and three of the remaining nine underlying CMBS transactions are currently experiencing principal prepayment.

Seven of the nine outstanding underlying CMBS transactions are publicly rated by DBRS. The largest single deal concentration contributing to the MACH ONE capital structure is 23.6% of the pool balance (Schooner Trust, Series 2004-CCF1), and the four largest deals represent 76.7% of the pool balance. There is only one loan currently in special servicing throughout the nine underlying CMBS transactions, and DBRS does not anticipate the resolution of this loan to result in a loss.

A full report providing additional analytical detail on the contributing underlying Canadian CMBS transactions will be published shortly.

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

The applicable methodology is CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.

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