DBRS Downgrades Remaining Class of Merrill Lynch Mortgage Trust 2005-CIP1

DBRS Limited (DBRS) has today downgraded the rating of the remaining class of Commercial Mortgage Pass-Through Certificates, Series 2005-CIP1 (the Certificates) issued by Merrill Lynch Mortgage Trust, Series 2005-CIP1 (MLMT 2005-CIP1 or the Trust) as follows:

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

The rating downgrade is the result of the most recent realized losses to the Trust, which occurred after The Centre of Excellence loan (Prospectus ID#80) was liquidated from the Trust at a loss of $2.9 million with the April 2017 remittance. The Centre of Excellence loan was secured by an office property in Wauwatosa, Wisconsin, and was transferred to special servicing in February 2015 for imminent default. The property experienced cash flow issues following the departure of the largest tenant in September 2014, as the borrower struggled to backfill the vacant space. The loan was scheduled for auction in late January 2017 and was subsequently resolved with the April 2017 remittance. The last reported property valuation, dated May 2015, valued the property at $4.9 million, down from $8.5 million at issuance. The servicer reported proceeds of $2.2 million with the property’s sale, with a loss severity of 57.2%. The loss wiped the remaining balance on Class E and reduced the principal balance on Class D by 11.5%. As of the April 2017 remittance, there are four loans remaining, all of which are performing, with a cumulative outstanding principal balance of $29.3 million.

There are no outstanding ratings remaining following the above-referenced rating action. As such, this concludes DBRS’s surveillance of this transaction.

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 principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.

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