OREANDA-NEWS. S&P Global Ratings today raisedits ratings on three classes of commercial mortgage pass-through certificates from Real Estate Asset Liquidity Trust's series 2006-2, a Canadian commercial mortgage-backed securities (CMBS) transaction. At the same time, we affirmed our ratings on three other classes from the same transaction (see list).

Our rating actions on the principal - and interest-paying certificates follow our analysis of the transaction, primarily using our criteria for rating U. S. and Canadian CMBS transactions, which included a review of the credit characteristics and performance of the remaining loans in the pool, the transaction's structure, and the liquidity available to the trust.

We raised our ratings on classes C, D-1, and E-1 to reflect our expectation ofthe available credit enhancement for these classes, which we believe is greater than our most recent estimate of necessary credit enhancement for the respective rating levels. The upgrades also follow our views regarding the current and future performance of the transaction's collateral and reduction in trust balance.

The affirmations on the principal - and interest-paying certificates reflect our expectation that the available credit enhancement for these classes will be within our estimate of the necessary credit enhancement required for the current ratings and our views regarding the current and future performance of the transaction's collateral.

We affirmed our 'AAA (sf)' rating on the class XC-1 interest-only (IO) certificates based on our criteria for rating IO securities.

TRANSACTION SUMMARY

As of the Aug. 12, 2016, trustee remittance report, the collateral pool balance was CAD$73.7 million, which is 17.9% of the pool balance at issuance. The pool currently includes 10 loans (reflecting crossed loans), down from 67 loans at issuance. One loan(CAD$1.0 million, 1.3%) is defeased; and seven (CAD$48.0 million, 65.2%) are on the master servicer's watchlist. The master servicer, Midland Loan Services, reported financial information for 100.0% of the nondefeased loans in the pool, of which 96.7% was year-end 2015 data and the remainder was partial-year 2016 or 2015 data.

Excluding the defeased loan, we calculated a 1.54x S&P Global Ratings' weighted average debt service coverage and 59.8% S&P Global Ratings' weighted average loan-to-value ratio using a 7.66% S&P Global Ratings' weighted averagecapitalization rate for the remaining loans.