DBRS Rates Jefferies Resecuritization Trust 2010-R7

DBRS has today assigned the following ratings to the Resecuritization Trust Certificates, Series 2010-R7 issued by Jefferies Resecuritization Trust 2010-R7 (the Trust).

-- $4.7 million Class 3-A1* rated at AAA (sf)
-- $705.0 thousand Class 3-A2* rated at AA (sf)
-- $706.0 thousand Class 3-A3* rated at A (sf)
-- $5.4 million Class 3-A5** rated at AA (sf)
-- $6.1 million Class 3-A6** rated at A (sf)
-- $3.5 million Class 6-A1* rated at AAA (sf)
-- $2.1 million Class 6-A2* rated at A (sf)
-- $5.6 million Class 6-A5** rated at A (sf)
-- $15.4 million Class 7-A1* rated at AAA (sf)
-- $1.9 million Class 7-A2* rated at AA (sf)
-- $1.6 million Class 7-A3* rated at A (sf)
-- $17.3 million Class 7-A5** rated at AA (sf)
-- $18.9 million Class 7-A6** rated at A (sf)

There are eight groups total in this resecuritization trust. DBRS rates Groups 3, 6 and 7, each consisting of one seasoned senior residential mortgage-backed security (RMBS). The ratings on the certificates reflect the credit enhancement provided by subordination within each group. The ratings also reflect the quality of the underlying securities. The Initial Exchangeable Certificates are exchangeable for the Exchangeable Certificates and vice versa, in the related combinations described in the private placement memorandum.

The ratings assigned to the certificates address the likelihood of the receipt by certificate holders of all distributions to which such certificate holders are entitled to and as such the entitlements may be reduced by (i) the allocation of certain interest shortfalls that may include interest shortfalls resulting from prepayments, application of any Relief Act reductions and interest rate modifications on the underlying collateral and (ii) any extraordinary trust expenses that may be incurred. For more details on the ratings, please refer to the offering documents.

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

Within each DBRS-rated group, interest and principal payments on the certificates will generally be made one business day following the Group 3 and Group 7 underlying distribution date (the 25th day of each month) commencing in December 2010. Interest payments will be distributed on a sequential basis to the certificates. Principal payments will be distributed on a sequential basis to the certificates until their certificate principal balances have 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.

Each DBRS-rated group within the Trust is a resecuritization of one senior RMBS represented by one real estate mortgage investment conduit (REMIC). The REMIC trusts are backed by pools of prime or Alt-A, fixed- or adjustable-rate, first lien, one- to four-family residential mortgages.

Note:

• denotes Initial Exchangeable 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.