Fitch Upgrades 6 Classes of Asset Securitization Corp.'s 1996-MD VI Commercial Mtge P-T Ctfs.

CHICAGO -- Fitch upgrades the following classes of Asset Securitization Corporation's commercial mortgage pass-through certificates, series 1996-MD VI:

--$44.8 million class A-4 to 'AAA' from 'AA+;

--$22.4 million class A-5 to 'AAA' from 'AA';

--$49.2 million class A-6 to 'AAA' from 'BBB';

--$71.6 million class A-7 to 'A+' from 'BB+';

--$35.8 million class B-1 to 'BB' from 'B-';

--$1,000 class B-1H to 'BB' from 'B-'.

Classes A-1C, interest only class CS-3, class A-2 and class A-3 are not rated by Fitch.

The upgrades are due to loan repayments, defeasance and scheduled amortization. As of the November 2006 remittance date, the transaction has paid down 63.6% since issuance.

The Horizon portfolio had been a Fitch loan of concern due to declining performance and a stressed debt service coverage ratio (DSCR) less than 1.0 times (x) at Fitch's last rating action. However, the loan's payoff on its anticipated repayment date in October 2006, combined with the earlier defeasance of the Columbia Sussex portfolio (29.8%) allow for the upgrades to the Fitch rated classes.

Currently, there are two remaining non-defeased loans in the transaction, the MHP portfolio and the Palmer Square loan. The MHP loan is the largest loan in the pool (61%) consisting of four full-service hotels located in three states. Performance has improved for 2005 and year to date 2006, for three of the hotels in the portfolio, but the overall net cash flow (NCF) is down due to declining results at the Marriott New Orleans, which sustained damage from hurricane Katrina and continues to be impacted by reduced market demand. However, the portfolio benefits from a short, 20-year amortization schedule which has resulted in loan paydown of approximately 25% since issuance resulting in a debt per key exposure of $58,598 per room.

The other non-defeased loan in the transaction, representing 9.1% of the pool balance, is the Palmer Square loan. The loan is secured by a mixed use property consisting of three mixed use office and retail buildings, a full-service hotel and a two parking facilities. The year end (YE) 2005 NCF continues to improve and Fitch's resulting DSCR is 3.30x, as compared to 3.12x for YE 2004. The weighted average occupancy remains strong at 96.3% for the retail and office portions as of April 2006.

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