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

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

-- Class K to AAA (sf) from BBB (high) (sf)
-- Class L to AAA (sf) from BBB (sf)
-- Class M to AAA (sf) from BBB (low) (sf)
-- Class N to AA (low) (sf) from BB (high) (sf)

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

In addition, the rating of Class J 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 94.2%. Of the 12 original underlying CMBS transactions that were contributing to the MACH ONE transaction, the contributing classes in 11 transactions have been paid off in full and the remaining one underlying CMBS transaction is currently experiencing principal prepayment.

The last outstanding underlying CMBS transaction, Merrill Lynch Financial Assets Inc., Series 2002-Canada 8 is publicly rated by DBRS. The first lost bond in the underlying CMBS transaction has not experienced a loss and is not projected to at this time.

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

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

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (December 2015), which can be found on our website under Methodologies.

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