Fitch Downgrades MLMT 2008-C1; Assigns LS Ratings

CHICAGO--(Business Wire)--
Fitch Ratings has downgraded 12 classes of Merrill Lynch Mortgage Trust series
2008-C1 commercial mortgage pass-through certificates. In addition, Fitch has
assigned, maintained, or revised Rating Outlooks and Loss Severity (LS) ratings
as applicable. A detailed list of rating actions follows at the end of this
release.

The downgrades are the result of loss expectations on specially serviced loans
as well as Fitch's prospective views regarding commercial real estate market
value and cash flow declines. Fitch foresees potential losses of 6.4% for this
transaction should market conditions not recover. Today's rating actions are
based on losses of 3.8%, including 100% of the term losses and 25% of the losses
anticipated to occur at maturity; the 3.8% recognizes all of the losses
anticipated in the next five years.

Given the significant remaining term to maturity, Fitch's actions today do not
account for the full magnitude of possible maturity losses. The bonds with
Negative Outlooks indicate classes that may be downgraded in the future should
full potential losses be realized.

Fitch analyzed the transaction and calculated expected losses by assuming cash
flows on each of the properties decline 15% from year-end (YE) 2007 and property
values decline 35% from issuance. These loss estimates were reviewed in more
detail for certain loans representing 66.0% of the pool and, in some cases,
revised based on additional information and/or property characteristics.

Approximately 29.0% of the mortgages mature within the next five years as
follows: 21.6% in 2012 and 7.4% in 2014. All losses associated with these loans
are fully recognized in the rating actions.

Fitch identified 18 Loans of Concern (15.9%) within the pool, 11 of which
(10.1%) are specially serviced. Ten of the specially serviced loans (9.9%) are
related to the bankruptcy of the loans' sponsor, DBSI, Inc. (DBSI), which filed
for bankruptcy in November 2008. All but two of the loans related to DBSI are in
the final stages of replacing the sponsor and ultimately being reinstated as
performing loans with the master servicer, with no losses expected.

Only one of the loans (1.5%) within the top 15 is expected to default during the
term and experience a loss severity of approximately 20%. The largest
contributors to loss across the transaction are the Biewend Building (5.2%) and
the Village at Old Trace (1.3%).

The Biewend Building loan is collateralized by a 154,528 square foot (sf)
Medical Office building on the campus of Tufts-New England Medical Center in
downtown Boston. The property is 100% leased to New England Medical Center, a
nonprofit acute care hospital and the principal teaching hospital for Tufts
University School of Medicine. The building was constructed in 1924 and was last
renovated from 1999-2003. The most recent debt service coverage ratio (DSCR) for
the property is 1.37 times (x) as of YE 2008. The sponsor for the loan is NNN
Realty Advisors, Inc. The loan is not expected to default during the term, but
Fitch expects that the loan will default upon maturity and incur losses of
approximately 20%, based upon a projected value decline of 35% over the term of
the loan.

The Village at Old Trace is secured by a 52,681 sf retail center located in
Marietta, GA. Occupancy as of January 2009 was 65%. The loan is 90+ days
delinquent and is currently being specially serviced. The loan's sponsor DBSI
filed for bankruptcy in November 2008. However, unlike the majority of the other
DBSI loans in the transaction, this loan is not performing and may not be
reinstated with the master servicer. A receiver was put in place on Sept. 28,
2009 as the special servicer determines a course of action for the loan
resolution. The loan has experienced an appraisal reduction, based upon a
recently received valuation. Fitch expects that this loan will incur losses of
approximately 48% upon its additional stresses.

Fitch has downgraded, removed from Rating Watch Negative and assigned Rating
Outlooks and LS ratings to the following classes:

--$8.3 million class E to 'A/LS5' from 'A+'; Outlook Negative;

--$9.5 million class F to 'BBB/LS5' from 'A'; Outlook Negative;

--$9.5 million class G to 'BBB/LS5' from 'A-'; Outlook Negative;

--$10.7 million class H to 'BB/LS5 ' from 'BBB+'; Outlook Negative;

--$11.9 million class J to 'BB/LS5' from 'BBB'; Outlook Negative;

--$10.7 million class K to 'B/LS5' from 'BBB-'; Outlook Negative;

--$8.3 million class L to 'B-/LS5' from 'BB+'; Outlook Negative;

--$3.4 million class M to 'B-/LS5' from 'BB'; Outlook Negative;

--$3.6 million class N to 'B-/LS5' from 'BB-'; Outlook Negative;

--$3.6 million class P to 'CCC/RR6' from 'B+';

--$2.4 million class Q to 'CCC/RR6' from 'B';

--$3.6 million class S to 'CCC/RR6' from 'B-'.

Additionally, Fitch has affirmed, maintained the Rating Outlooks and assigned LS
ratings to the following classes as indicated:

--$14.1 million class A-1 at 'AAA/LS-1'; Outlook Stable;

--$55.6 million class A-2 at 'AAA/LS-1'; Outlook Stable;

--$65.6 million class A-3 at 'AAA/LS-1'; Outlook Stable;

--$32.4 million class A-SB at 'AAA/LS-1'; Outlook Stable;

--$326.4 million class A-4 at 'AAA/LS-1'; Outlook Stable;

--$43.5 million class A-1A at 'AAA/LS-1'; Outlook Stable;

--$122.3 million class A-1AF at 'AAA/LS-1'; Outlook Stable;

--$71.2 million class AM at 'AAA/LS-3'; Outlook Stable;

--$6.32 million class AM-A at 'AAA/LS-3'; Outlook Stable;

--$17.5 million class AM-AF at 'AAA/LS-3'; Outlook Stable;

--$41.8 million class AJ at 'AAA/LS-3'; Outlook Negative;

--$3.7 million class AJ-A at 'AAA/LS-3'; Outlook Negative;

--$10.3 million class AJ-AF at 'AAA/LS-3'; Outlook Negative;

--$19.5 million class B at 'AA+/LS-5'; Outlook Negative;

--$11.9 million class C at 'AA/LS-5'; Outlook Negative;

--$8.3 million class D at 'AA-/LS-5'; Outlook Negative;

--Interest only class X at 'AAA'; Outlook Stable.

The $53.6 million class T is not rated by Fitch.

Additional information on Fitch's amended criteria for analyzing recent vintage
U.S. CMBS is available in the July 8, 2009 report, 'Surveillance Methodology for
Recent Vintage U.S. CMBS', which is available at 'www.fitchratings.com' under
the following headers:

Structured Finance then CMBS then Criteria Reports

Fitch will release a report titled 'Merrill Lynch Mortgage Trust 2008 C-1' that
will contain a graph of revised loss expectations for the transaction on Fitch's
web site at 'www.fitchratings.com' under the following headers:

Structured Finance then CMBS then Special Reports

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE.

Fitch Ratings, Chicago
Lauren Cerda, 312-606-2317
Britt Johnson, 312-606-2341
or
Media Relations:
Sandro Scenga, 212-908-0278, New York
Email: sandro.scenga@fitchratings.com

Copyright Business Wire 2009