Fitch Places 3 Classes of MLFT 2006-1 on Rating Watch Negative

NEW YORK--(BUSINESS WIRE)--Fitch Ratings places the following classes of Merrill Lynch Floating Trust, Series 2006-1 on Rating Watch Negative:

--$36.3 million Class K at 'BBB+';

--$31 million Class L at 'BBB';

--$48.2 million Class M at 'BB'.

The placement of classes K through M on Rating Watch Negative is the due to the recent modification of the Lord & Taylor loan (38%). The loan was modified by the special servicer on Jan. 9, 2009 due to declining performance of the asset. Fitch's negative outlook on the retail sector suggests that the asset will continue to face performance challenges. Fitch will resolve the Rating Watch status once it determines the implications of the modification and the declining performance of the asset.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.