DBRS Rates Canvas Securitization LLC

DBRS has today assigned the following ratings to the Canvas Securitization LLC, Resecuritization Pass-Through Certificates, Series 1 through Series 16 Notes issued by Lavender Trust (the Master Trust).

-- $4.1 million Series RR1, Class A-1 rated AAA
-- $19.2 million Series RR1, Class A-2 rated A
-- $4.4 million Series RR2, Class A-1 rated AAA
-- $19.6 million Series RR2, Class A-2 rated A
-- $4.2 million Series RR3, Class A-1 rated AAA
-- $20.2 million Series RR3, Class A-2 rated A
-- $3.7 million Series RR4, Class A-1 rated AAA
-- $19.7 million Series RR4, Class A-2 rated A
-- $2.0 million Series RR5, Class A-1 rated AAA
-- $9.6 million Series RR5, Class A-2 rated A
-- $1.9 million Series RR6, Class A-1 rated AAA
-- $9.3 million Series RR6, Class A-2 rated A
-- $1.1 million Series RR7, Class A-1 rated AAA
-- $4.7 million Series RR7, Class A-2 rated A
-- $1.6 million Series RR8, Class A-1 rated AAA
-- $6.7 million Series RR8, Class A-2 rated A
-- $1.6 million Series RR9, Class A-1 rated AAA
-- $6.8 million Series RR9, Class A-2 rated A
-- $1.2 million Series RR10, Class A-1 rated AAA
-- $5.7 million Series RR10, Class A-2 rated A
-- $0.9 million Series RR11, Class A-1 rated AAA
-- $4.3 million Series RR11, Class A-2 rated A
-- $0.6 million Series RR12, Class A-1 rated AAA
-- $2.9 million Series RR12, Class A-2 rated A
-- $0.6 million Series RR13, Class A-1 rated AAA
-- $3.2 million Series RR13, Class A-2 rated A
-- $0.7 million Series RR14, Class A-1 rated AAA
-- $3.7 million Series RR14, Class A-2 rated A
-- $0.5 million Series RR15, Class A-1 rated AAA
-- $2.3 million Series RR15, Class A-2 rated A
-- $0.5 million Series RR16, Class A-1 rated AAA
-- $2.0 million Series RR16, Class A-2 rated A

The Lavender Trust is a Master Trust initially consisting of 16 Series. Each Series consists of four resecuritization bonds which are backed by a seasoned senior residential mortgage-backed security (RMBS). Within each series, the AAA ratings on the Class A-1 notes and the “A” ratings on the Class A-2 notes reflect the credit enhancement provided by subordination. The ratings also reflect the quality of the underlying securities.

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

Interest and principal payments on the securities will be made on the business day following the underlying distribution date, commencing in June 2010. Interest and then principal will be distributed on a sequential basis to the notes, in the order of priority specified in the private placement memorandum, until the principal balances thereof are reduced to zero.

Any losses realized from the underlying securities will be allocated in a reverse sequential order to the notes.

The series are resecuritizations of senior RMBS, each represented by one real estate mortgage investment conduits (REMICs). The REMICs are backed by pools of prime and Alt-A (mostly prime), adjustable-rate, first-lien, one- to four-family residential mortgages.

Notes:
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 our website under Methodologies.

This is a Structured Finance rating.