DBRS Downgrades One Class of ML-CFC Commercial Mortgage Trust, Series 2006-1

DBRS Limited (DBRS) has today downgraded the rating of the following class of Commercial Mortgage Pass-Through Certificates, Series 2006-1 (the Certificates) issued by ML-CFC Commercial Mortgage Trust, Series 2006-1 (ML-CFC 2006-1 or the Trust):

-- Class G to D (sf) from C (sf)

In addition to the rating action above, DBRS has removed the Interest in Arrears designation on Class E and G.

The rating downgrade is the result of the most recent realized losses to the trust, which occurred after the Breckenridge Park Portfolio loan (Prospectus ID#24) was liquidated from the trust at a loss of $9.6 million, with the September 2015 remittance. The Breckenridge Park Portfolio loan was secured by a portfolio of 11 Class B warehouse and flex industrial buildings located in Tampa, Florida. The loan transferred to special servicing in February 2013 due to imminent payment default. The last reported property valuation dated September 2014 valued the portfolio at $14.1 million, down from $23.3 million at issuance. With the September 2015 remittance, the loan was liquidated at a loss severity of 58.4%. As a result of this loan’s liquidation from the trust, outstanding interest shortfalls due to Class E were recouped. The trust loss wiped the remaining balance on Class H and reduced the principal balance on Class G by 47.0%. As of the September 2015 remittance, there are 12 loans still in special servicing, with a cumulative outstanding principal balance of $93.1 million.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction. The September 2015 Monthly CMBS Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

The applicable methodologies are North American CMBS Rating Methodology (June 2015) and CMBS North American Surveillance (January 2015), which can be found on our website under Methodologies.