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 (the Trust):

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

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

The rating downgrade is the result of the most recent realized losses to the Trust, which occurred after the Junction Shoppes loan (Prospectus ID#85) was liquidated from the Trust at a loss of $3.7 million with the January 2017 remittance. The Junction Shoppes loan was secured by a retail property in Apache Junction, Arizona, and was transferred to special servicing in October 2012 for payment default. The property became real estate owned in September 2016. The last reported property valuation, dated May 2016, valued the property at $3.6 million, down from $8.0 million at issuance. The servicer reported proceeds of $1.8 million with the property’s sale, with a loss severity of 66.8%. The loss wiped the remaining balance on Class D and reduced the principal balance on Class C by 6.2%. As of the January 2017 remittance, there are no loans remaining in special servicing and three loans on the servicer’s watchlist with a cumulative outstanding principal balance of $22.1 million.

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 (January 2017) and CMBS North American Surveillance (December 2016), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.