DBRS Assigns AA (sf) Rating to IRS Payments Re: LNR CDO III Ltd.

DBRS has today assigned a rating of AA (sf) to the Interest Rate Swap payments which may be owed to the Interest Rate Swap counterparty (“Swap Counterparty”) under an Event of Default, where LNR CDO III Ltd. (“LNR III”) is the sole defaulting party due to a Failure to Pay or Deliver as defined in Section 5(a)(i) of the ISDA Master Agreement (“Agreement”) executed on January 20, 2005, between LNR III and the Swap Counterparty. For the avoidance of doubt, the Interest Rate Swap payments include any Potential Swap Termination Payment amounts (“Potential Termination Payment”), plus all interest due as determined by the Applicable Rate defined in the Agreement, on or before the maturity date of LNR III in February 2043.

General Terms of the Interest Rate Swap Transaction:

Fixed Rate Payer: LNR CDO III Ltd.
Trade Date: August 3, 2005
Effective Date: August 8, 2005
Termination Date: June 28, 2015
Initial Notional Amount: $483,064,171.60
Fixed Rate: 4.6101%
Reference: N405740N

The interest rate swap payments benefit from being senior in the right of repayment to all Notes issued by LNR III.

The DBRS rating addresses only the ultimate payment in full of the interest rate swap payments plus all interest due, as determined by the Applicable Rate defined in the Agreement, owed by the Fixed Rate Payer to the Floating Rate Payer if a Termination Event occurs on or before the Termination Date.

LNR III is collateralized primarily by a pool of Commercial Mortgage Backed Securities (CMBS).

This rating is based on information provided by the Swap Counterparty.

The principal methodology is Rating US & European Structured Finance CDO Restructurings, which can be found on our website under Methodologies.

This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.

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