DBRS Rates ASG Resecuritization Trust 2012-1

DBRS, Inc. has today assigned the following ratings to the REMIC Notes, Series 2012-1, issued by ASG Resecuritization Trust 2012-1 (the Trust):

-- $12.6 million Class G44* rated at AAA (sf)
-- $1.1 million Class G48* rated at AAA (sf)
-- $1.2 million Class G52* rated at AAA (sf)
-- $1.2 million Class G56* rated at AAA (sf)
-- $1.1 million Class G60* rated at AA (sf)
-- $1.2 million Class G64* rated at A (sf)
-- $13.8 million Class A48** rated at AAA (sf)
-- $14.9 million Class A52** rated at AAA (sf)
-- $16.1 million Class A56** rated at AAA (sf)
-- $17.2 million Class A60** rated at AA (sf)
-- $18.4 million Class A64** rated at A (sf)

This resecuritization trust consists of one seasoned senior residential mortgage-backed security (RMBS). The ratings on the notes reflect the credit enhancement provided by subordination. The ratings also reflect the quality of the underlying asset. Exchangeable Notes may be exchanged for Exchanged Notes, and vice versa, in the combinations described in the offering memorandum.

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

Interest and principal payments will be made on the third business day following the underlying distribution date (generally the 25th day of each month) commencing in July 2012. Interest payments will be distributed on a pro rata basis to the notes and principal will be distributed on a sequential basis to the notes until the principal balances thereof are reduced to zero.

Losses realized from the underlying security will be allocated in a reverse sequential order to the non-rated notes, until the principal balances have been reduced to zero. No realized losses shall be allocated to the rated notes.

This transaction is a resecuritization consisting of one senior RMBS represented by one real estate mortgage investment conduit (REMIC). The REMIC is backed by a pool of seasoned, prime, first lien, adjustable-rate, one- to four-family residential mortgage loans.

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 Exchangeable Note.
  ** denotes Exchanged Note.

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.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.