DBRS Rates Morgan Stanley Re-REMIC Trust 2010-R3, Re-REMIC Pass-Through Certificates, Series 2010-R3

DBRS has today assigned the following ratings to the Re-REMIC Pass-Through Certificates, Series 2010-R3 issued by Morgan Stanley Re-REMIC Trust 2010-R3 (the Trust).

-- $35.9 million Class 2-A* rated at AAA
-- $23.5 million Class 2-A1** rated at AAA
-- $6.2 million Class 2-A2** rated at AAA
-- $6.2 million Class 2-A3** rated at AAA
-- $3.8 million Class 2-B1** rated at AA
-- $8.1 million Class 2-BA** rated at "A"

There are three groups total in this resecuritization trust. DBRS rates Group 2, which consists of two senior residential mortgage-backed securities (RMBS). The ratings on the certificates reflect the credit enhancement provided by subordination within their respective groups. The ratings also reflect the quality of the underlying assets. The Exchanged Certificates are exchangeable for the Exchangeable Certificates and vice versa, in the related combinations described in Schedule I of the offering memorandum.

Other than the specified classes above, DBRS does not rate any other certificates in this transaction.

Interest and principal payments on the certificates will be made one business day following the underlying distribution date (the 25th of each month), commencing in April 2010. Within Group 2, interest payments will be distributed on a pro rata basis to the certificates and principal payments will be distributed on a sequential basis to the certificates until the certificate principal balance has been reduced to zero.

Any losses realized from the underlying securities will be allocated reverse sequentially to the certificates within each group until their principal balances have been reduced to zero.

The DBRS-rated group is a resecuritization of two senior RMBS represented by one real estate mortgage investment conduits (REMIC). The REMIC trust is backed by a pool of Alt-A, fixed-rate, first lien, one- to four-family residential mortgages.

Note:

• denotes Exchanged Certificate.
  ** denotes Exchangeable Certificate.

All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating U.S. Residential Mortgage-Backed Securities Transactions, which can be found on the DBRS website under Methodologies.

This is a Structured Finance rating.