DBRS Rates BCAP LLC 2012-RR4 Trust Resecuritization Trust Securities

DBRS, Inc. (DBRS) has today assigned the following ratings to the Resecuritization Trust Securities issued by BCAP LLC 2012-RR4 Trust (the Trust).

-- $10.3 million Class 2A1* rated at AAA (sf)
-- $1.5 million Class 2A2* rated at AA (sf)
-- $1.5 million Class 2A3* rated at A (sf)
-- $11.9 million Class 2A4** rated at AA (sf)
-- $13.4 million Class 2A5** rated at A (sf)
-- $3.0 million Class 2A6** rated at A (sf)

-- $13.2 million Class 3A1* rated at AAA (sf)
-- $2.6 million Class 3A2* rated at AA (sf)
-- $1.9 million Class 3A3* rated at A (sf)
-- $15.5 million Class 3A4** rated at AA (sf)
-- $17.4 million Class 3A5** rated at A (sf)
-- $4.2 million Class 3A6** rated at A (sf)

-- $5.3 million Class 4A1* rated at AAA (sf)
-- $0.7 million Class 4A2* rated at AA (sf)
-- $0.7 million Class 4A3* rated at A (sf)
-- $6.0 million Class 4A4** rated at AA (sf)
-- $6.7 million Class 4A5** rated at A (sf)
-- $1.4 million Class 4A6** rated at A (sf)

-- $15.4 million Class 5A1* rated at AAA (sf)
-- $2.9 million Class 5A2* rated at A (sf)
-- $18.3 million Class 5A3** rated at A (sf)

-- $16.5 million Class 7A1** rated at A (sf)
-- $14.4 million Class 7A3* rated at AA (sf)
-- $1.9 million Class 7A4* rated at A (sf)

-- $5.0 million Class 9A1* rated at AAA (sf)
-- $1.1 million Class 9A2* rated at AA (sf)
-- $0.9 million Class 9A3* rated at A (sf)
-- $6.1 million Class 9A4** rated at AA (sf)
-- $7.0 million Class 9A5** rated at A (sf)
-- $2.0 million Class 9A6** rated at A (sf)

There are nine groups in this resecuritization trust. DBRS rates securities from groups 2, 3 4, 5, 7 and 9, each consisting of one or two seasoned senior residential mortgage-backed security (RMBS). The ratings on the securities reflect the credit enhancement provided by subordination within each group or subgroup and the quality of the underlying assets. Initial Exchangeable securities may be exchanged for Subsequent Exchangeable securities, and vice versa, in the combinations described in the private placement memorandum.

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 26th of each month regardless of the underlying distribution date, commencing in May 2012. Within each DBRS-rated, interest payments will be distributed on a pro rata basis to the securities, and principal payments will be distributed on a sequential basis, until the principal balances have been reduced to zero.

Any losses realized from the underlying securities will be allocated in a reverse sequential order within each group, until the principal balances have been reduced to zero.

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

The ratings assigned to the offered securities address (i) the likelihood of the receipt by security holders of all principal distributions to which such security holders are entitled and (ii) the likelihood of the receipt by security holders of the amount of interest actually received by the trust to the extent payable to each class in accordance with the priorities described in the operative documents (as such interest received by the trust may have been reduced as a result of any interest shortfalls allocated to the related underlying securities, and as such interest entitlement may be further reduced by the allocation of extraordinary trust expenses). For more details on the ratings, please refer to the offering and transaction legal documents.

DBRS ReREMIC Methodology Excerpt:
Since a ReREMIC is a pass-through of interest, principal and losses from the underlying certificates, its interest entitlement is usually capped at the actual interest amount collected on the underlying securities.

In other words, a ReREMIC trust cannot pay out more interest than it receives from its collateral, and sometimes, what is collected on the underlying securities can be as low as zero.

When rating ReREMICs, DBRS is assessing the ability of the trust making the full principal payment by the legal final maturity date of the transaction. These transactions typically define interest rate as the lesser of the bond coupon and the available interest funds. Hence, the DBRS rating does not provide an opinion on the timeliness or amount of interest payments the investor may receive. The trust’s only obligation is to pass through the interest proceeds net of fees from the underlying securities.

Notes:

• denotes Initial Exchangeable Security.
  ** denotes Subsequent Exchangeable Security.

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

The applicable methodology is RMBS Insight: U.S. Residential Mortgage-Backed Securities Loss Model and Rating Methodology, which can be found on our website under Methodologies.

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link or by contacting us at info@dbrs.com.