Fitch Downgrades 2 & Places 1 Class of MLMI 1999-C1 on Watch Negative.

CHICAGO -- Fitch Ratings downgrades and assigns a Distressed Recovery (DR) rating to the following classes of Merrill Lynch Mortgage Investors, Inc.'s mortgage pass-through certificates, series 1999-C1:

--$23.7 million class G to 'B-/DR1' from 'B';

--$20.7 million class H to

Fitch also places one class on Rating Watch Negative:

--$7.4 million class F at 'A+'.

Fitch affirms the following:

--$295.4 million class A-2 at 'AAA';

--Interest only class IO at 'AAA';

--$32.6 million class B at 'AAA';

--$26.7 million class C at 'AAA';

--$8.9 million class D at 'AAA';

--$20.7 million class E at 'AA'.

Fitch maintains the $3 million class J at 'C/DR6'. Fitch does not rate the $0.2 million class K, and class A-1 has been paid in full.

The downgrades and Watch Negative placement are due to expected losses on the assets in special servicing (11.4%), in addition to the uncertainty surrounding the timing of the disposition of assets that have been in special servicing for over 24 months. The rating of class F will be revisited when more information becomes available on the timing and expected losses of the assets.

Currently there are four assets (10.0%) and one loan (1.4%), where the collateral has been liquidated, in special servicing. The largest asset is an office building (3.8%) in Dallas, TX, that lost its sole tenant, causing physical occupancy to decline to 20%. The loan is performing under a forbearance agreement that expires in August 2007.

The next largest specially serviced asset is a real-estate owned office building (3.4%) in Irving, TX, that is being marketed for sale. The third is a multifamily property (1.4%) in New Orleans, LA, that was damaged as a result of Hurricane Katrina. The asset has been completely restored and is being re-tenanted; current occupancy is 85%.

Finally, two unrelated loans are in special servicing due to litigation between the trust and the respective borrowers. One is a medical office property (1.8%) in Beverly Hills, CA. The collateral for the other loan has been liquidated; however, the special servicer is pursuing funds in bankruptcy court.

As of the May 2007 distribution date, the deal has paid down 26% to $439.3 million from $592.5 million at issuance. In total, 17 loans (24%) have defeased, including two (7.8%) of the top 10 loans in the pool.

Fitch's Distressed Recovery (DR) ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. For more information on Distressed Recovery ratings, see the full report ('Structured Finance Distressed Recovery Ratings'), which is available on the Fitch Ratings web site at www.fitchratings.com.

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.