DBRS Upgrades 11 Classes of MACH ONE 2005-CDN1, ULC

DBRS, Inc. (DBRS) has today upgraded the ratings of 11 classes of MACH ONE 2005-CDN1, ULC Canadian Commercial Mortgage-Backed Securities Pass-Through Certificates (MACH ONE) as follows:

-- Class C to AAA (sf) from A (high) (sf)
-- Class D to AAA (sf) from A (sf)
-- Class E to AAA (sf) from A (low) (sf)
-- Class F to AAA (sf) from BBB (high) (sf)
-- Class G to AA (sf) from BBB (sf)
-- Class H to A (high) (sf) from BBB (low) (sf)
-- Class J to A (low) (sf) from BB (high) (sf)
-- Class K to BBB (high) (sf) from BB (sf)
-- Class L to BBB (sf) from BB (low) (sf)
-- Class M to BBB (low) (sf) from B (high) (sf)
-- Class N to BB (high) (sf) from B (sf)

All trends are Stable. DBRS does not rate the first loss piece, Class CS.

In addition, the rating of Class B has been discontinued as the class has been repaid in full..

The rating upgrades 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 since 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 84.4%. Of the 12 original underlying CMBS transactions that were contributing to the MACH ONE transaction, the contributing classes in nine transactions have been paid off in full, and two of the remaining seven underlying CMBS classes from the three underlying CMBS transactions are currently experiencing principal prepayment.

Two of the three outstanding underlying CMBS transactions are publicly rated by DBRS. The largest single deal concentration contributing to the MACH ONE capital structure is 44.1% of the pool balance (Merrill Lynch Financial Assets Inc., Series 2002-Canada 8). None of the contributing classes in the underlying CMBS transaction have experienced a loss and none are projected to at this time.

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 (January 2015), which can be found on our website under Methodologies.

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