Fitch Ratings Upgrades Merrill Lynch 1996-C1 Cls B, C, & D.

Business Editors

CHICAGO--(BUSINESS WIRE)--Dec. 10, 2003

Fitch Ratings upgrades Merrill Lynch Mortgage Investors, Inc.'s mortgage pass-through certificates, series 1996-C1 as follows:

-- $38.8 million class B to 'AAA' from 'AA+';

-- $38.8 million class C to 'AAA' from 'A+';

-- $32.3 million class D to 'AA' from 'BBB'.

The following classes are affirmed:

-- $95.1 million class A-3 at 'AAA';

-- Interest-only class IO at 'AAA';

-- $48.5 million class E at 'BB';

-- $32.3 million class F at 'C'.

Classes A-PO, A-1 and A-2 have paid off in full. Fitch does not rate the $9.4 million class G.

The rating upgrades are due to increased subordination levels resulting from 54.3% paydown of the pool's certificate balance to $295.5 million from $647.3 million.

The master servicer, GMAC Commercial Mortgage Corp., collected year-end (YE) 2002 operating statements for 79.9% of the pool by collateral balance. The YE 2002 weighted average debt service coverage ratio (DSCR) for these loans is 1.53 times (x) compared to 1.59x at YE 2001 and 1.37x at issuance.

Fitch has concerns with the 6 loans, representing 7.7% of the pool, in special servicing. The largest specially serviced loan, West Kentucky Outlet Center (2.9%), is secured by a retail property located in Eddyville, KY. The loan transferred to the special servicer in April 1999 and is now real estate owned (REO). The special servicer is marketing the property for sale. Of the remaining five specially serviced loans, two are 90 days delinquent (2.0%) and the other three are current (2.8%). While Fitch expects losses, the investment grade classes are well protected given their high credit support.