DBRS Upgrades 2 Classes, Confirms 9 of MLFAI 2001-Canada 6

Dominion Bond Rating Service (“DBRS”) has today upgraded two classes of Merrill Lynch Financial Assets Inc. Series 2001-Canada 6 (“MLFAI 2001-Canada 6”) as follows: Class B to AA (high) from AA, and Class C to A (high) from ”A”. In addition, DBRS has confirmed Classes A-1, A-2, and X at AAA, Class D at BBB, Class E at BBB (low), Class F at BB, Class G at BB (low), Class H at B, and Class J at B (low). The trends remain Stable.

The upgrades reflect increased credit enhancement due to continued pay down (6.8%) from loan amortization. In addition, one loan, The National Building (2.8% of the pool), has been defeased.

The transaction consists of 40 commercial mortgage loans, totalling Cdn$247,323,673. The deal is concentrated with 56.4% of the pool in the top ten loans, and 53.8% of the collateral are retail properties. The deal also benefits from a large number of loans (61.8% of the pool) having recourse to their respective borrower/guarantor.

DBRS notes that two cross-collateralized and cross-defaulted loans (2.3% of the pool) have defaulted and are specially serviced. The loans defaulted because a tenant vacated at one of the properties. The vacant space has been re-leased, but the property taxes remain in arrears. These loans will remain specially serviced until the tax payment is verified. In addition, one loan (1.0% of the pool) is on the DBRS HotList for a debt service coverage ratio below 1.0 times.