Fitch Affirms LNR CDO IV Series 2006-1 Ltd./Corp.

NEW YORK -- Fitch affirms seven classes of notes issued by LNR CDO IV Series 2006-1 Ltd./Corp.(LNR CDO IV) as follows:

--$474,385,000 class A notes at 'AAA';

--$10,000,000 class B-FX notes at 'AA';

--$204,174,000 class B-FL notes at 'AA';

--$54,950,000 class C-FX notes at 'A';

--$73,154,000 class C-FL notes at 'A;

--$54,052,000 class D-FX notes at 'A-;

--$10,000,000 class D-FL notes at 'A-;

--$72,058,000 class E notes at 'BBB+';

--$25,000,000 class F-FL notes at 'BBB';

--$31,046,000 class F-FX notes at 'BBB';

--$78,063,000 class G notes at 'BBB-'.

LNR CDO IV is a collateralized debt obligation (CDO) that closed on March 2, 2006 and is supported by a static pool of commercial mortgage-backed securities. LNR Partners Inc. (LNR), selected the initial collateral and serves as the collateral administrator. LNR is currently rated 'CSS1' by Fitch as a commercial mortgage special servicer. LNR CDO IV has no overcollateralization tests, interest coverage tests, or excess interest as credit enhancement features.

The affirmations are due to the stable performance of the transaction. The weighted average rating factor (WARF) declined, but remains at 'B/B-'. One asset, NFCT 1998-1 class H (0.64% of the total collateral in the pool) was downgraded to 'CC/DR4' from 'B' as a result of expected losses.

The ratings of the classes A and B-Fl address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the class B-FX, C-FL, C-FX, D-FL, D-FX, E, F-FL, F-FX, and class G notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralized Debt Obligations,' dated Oct. 4, 2006 and also available at www.derivativefitch.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.derivativefitch.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 means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto.