November 30, 2012 / 10:01 PM / in 5 years

TEXT-Fitch affirms MLFT 2006-1

Nov 30 - Fitch Ratings has affirmed the three remaining classes of Merrill
Lynch Floating Trust pass-through certificates, series 2006-1. The affirmations
of the distressed ratings are due to continued credit risk associated with the
outstanding two loans.

As of the November 2012 remittance, the pool has paid down by 98% since
issuance, with two loans remaining in the trust, both of which are in special
servicing. Since Fitch's last rating action, two loans paid in full, including
the Lord & Taylor portfolio which resulted in significant pay down to the trust.

The largest of the remaining two loans is secured by six full-service hotels in
Mexico, located within five distinct tourist markets, including Cancun, Cozumel,
Ixtapa, Acapulco, and San Jose del Cabo. The loan has been in special servicing
since February 2010 after the borrower amended certain operating leases without
lender approval. The servicer continues to negotiate with all parties to the
loan, and the involvement of both the U.S. and Mexican legal systems complicates
the workout. According to the servicer, litigation surrounding the workout may
face a long horizon as the borrower and principals continue to use their
influence in Mexico to delay foreclosure proceedings. Nevertheless, fairly
recent value estimates for the portfolio indicate strong recovery prospects.
Ultimate recovery however may be affected by a long workout window if advances
continue to accrue.

The other remaining loan is Crowne Plaza San Antonio, a 410-room hotel located
in San Antonio, TX. The loan transferred to special servicing in February 2012
for a technical default and for facing imminent maturity default, which occurred
on June 11, 2012. The loan is paid through Oct. 15, 2012; the November 2012
payment has not yet been received. A receiver has been appointed and management
was replaced. The special servicer continues to discuss workout options at this

Fitch affirms the following classes:
--$18.8 million class K at 'CCCsf'; RE 100%;
--$31.1 million class L at 'CCCsf'; RE 100%;
--$48.2 million class M at 'Dsf'; RE 90%.

These rating actions reflect the application of Fitch's current criteria which
are available at '' under
Structured Finance >> CMBS >> Criteria Reports

Additional information is available at ''. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan Floating-Rate
Transactions' (Dec. 1, 2011).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan Floating-Rate

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below