DBRS, Inc. (DBRS) has assigned the following ratings to the Mortgage Pass-Through Certificates, Series 2013-HYB1 issued by CSMC Trust 2013- HYB1 (the Trust).

-- $342.3 million Class A-1# rated at AAA (sf)
-- $342.3 million Class A-X-1* rated at AAA (sf)
-- $342.3 million Class A-X-2* rated at AAA (sf)
-- $21.4 million Class A-2# rated at AAA (sf)
-- $21.4 million Class A-X-3* rated at AAA (sf)
-- $21.4 million Class A-X-4* rated at AAA (sf)
-- $12.8 million Class A-3# rated at AAA (sf)
-- $12.8 million Class A-X-5* rated at AAA (sf)
-- $12.8 million Class A-X-6* rated at AAA (sf)
-- $5.1 million Class A-4 rated at AAA (sf)
-- $5.1 million Class A-X-7* rated at AAA (sf)
-- $5.1 million Class A-X-8* rated at AAA (sf)
-- $342.3 million Class A-X-11ᵉ rated at AAA (sf) -- $342.3 million Class A-6ᵉ# rated at AAA (sf) -- $342.3 million Class A-7ᵉ# rated at AAA (sf) -- $363.7 million Class A-8ᵉ# rated at AAA (sf) -- $363.7 million Class A-X-12ᵉ rated at AAA (sf)
-- $363.7 million Class A-10ᵉ# rated at AAA (sf)
-- $363.7 million Class A-X-13ᵉ rated at AAA (sf) -- $363.7 million Class A-9ᵉ# rated at AAA (sf) -- $376.5 million Class A-11ᵉ# rated at AAA (sf) -- $376.5 million Class A-X-14ᵉ rated at AAA (sf)
-- $376.5 million Class A-12ᵉ# rated at AAA (sf)
-- $376.5 million Class A-X-15ᵉ rated at AAA (sf) -- $376.5 million Class A-13ᵉ# rated at AAA (sf) -- $381.7 million Class A-14ᵉ rated at AAA (sf) -- $381.7 million Class A-X-16ᵉ rated at AAA (sf)
-- $381.7 million Class A-15ᵉ rated at AAA (sf)
-- $381.7 million Class A-X-17*ᵉ rated at AAA (sf)
-- $381.7 million Class A-16ᵉ rated at AAA (sf)
-- $16.0 million Class B-1 rated at AA (sf)
-- $7.7 million Class B-2 rated at ‘A’ (sf)
-- $7.7 million Class B-3 rated at BBB (sf)
-- $6.8 million Class B-4 rated at BB (sf)

Super senior classes. These classes benefit from additional protection from the senior support bond with respect to loss allocation.

• Denotes interest-only certificates. The class balances represent notional amounts.
  ᵉ Denotes Exchangeable Certificates. These certificates can be exchanged for combinations of initial exchangeable certificates as specified in offering documents.

The AAA (sf) ratings in this transaction reflect the 10.80% of credit enhancement provided by subordination. The AA (sf), ‘A’ (sf), BBB (sf) and BB (sf) ratings reflect 7.05%, 5.25%, 3.45% and 1.85% of credit enhancement, respectively. Other than the specified classes above, DBRS does not rate any other classes in this transaction.

The Trust contains a portfolio of prime residential adjustable rate mortgages. The mortgages were originated by First Republic Bank (97.1%) and various other originators (2.9%). The ratings on the Certificates reflect transactional strengths that include high quality underlying assets, well qualified borrowers, satisfactory third-party due diligence review, strong originator historical performance and robust representations and warranties counterparty, as well as the capabilities of First Republic Bank (“FRB”) and Select Portfolio Servicing Inc. as servicers on 97.1% and 2.9% of the mortgage pool respectively. Christiana Trust, a division of Wilmington Savings Fund Society, FSB will serve as trustee. Wells Fargo Bank, N.A. will serve as Master Servicer and Securities Administrator. The transaction employs a senior-subordinate shifting-interest cash flow structure that is enhanced from a traditional one.

The ratings on the Certificates also reflect some credit challenges, particularly with respect to the pool’s significant geographic concentration in the San Francisco area. California loans make up 68.8% of the transaction with San Francisco-San Mateo-Redwood City and Oakland-Fremont-Hayward MSAs (together the “San Francisco Area”) representing 37.7% and 7.8% of the pool respectively. DBRS undertook an extensive geographic analysis that incorporated the following factors:
1) The elevated asset correlation level as driven by the San Francisco Area concentration.
2) A stress test that increases the market value decline assumption by an additional 50% at the ‘AAA’ rating level for all properties located in the San Francisco Area.
3) A stress test that increases the unemployment rate to a historical high for all borrowers in the San Francisco Area.
4) DBRS’s given expected losses were adjusted upward to be able to withstand the above stress tests.

In addition to the stress tests, DBRS considered mitigating factors such as FRB’s deep market knowledge of San Francisco and their strategy of knowing their customers and properties, as well as the resulting strong loan performance for all FRB-originated loans dating back to its company inception in 1985. This performance has been sustained even through periods where San Francisco has witnessed significant property declines and natural disasters. DBRS’s review of FRB’s historical performance is broken down into four segments. In all segments, the FRB loans have significantly outperformed similar loans in the industry.
1) FRB’s historical originations by vintage.
2) FRB’s securitized adjustable rate mortgages with similar characteristics as the subject pool.
3) FRB’s securitized loans in the San Francisco Area.
4) FRB’s securitized adjustable rate mortgages in the San Francisco Area with similar characteristics as the subject pool.

DBRS views the representation and warranty standard in this transaction to be of strong quality. FRB, whom DBRS believes has adequate financial strength, provides standard life-time representations and warranties for approx. 97.1% of the collateral. The enforcement mechanism for breaches of representations includes automatic breach reviews by a third-party reviewer for any seriously delinquent loans and resolution of disputes are ultimately subject to determination in arbitration proceeding. Other than the mortgages originated by FRB, the rest of the pool (2.9%) also benefits from representations and warranties back-stopped by the seller, DLJ Mortgage Capital, Inc., a wholly owned subsidiary of Credit Suisse (USA), Inc., in the event of an originator’s bankruptcy or insolvency proceeding and if the originator fails to cure, repurchase or substitute such breach or loans. However, such a backstop is subject to certain sunset provisions that give consideration to prior loan performance. The full description of the representations and warranties standard, the mitigating factors and the DBRS analysis are detailed in the related rating report.

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

The applicable methodologies are:
• RMBS Insight: U.S. Residential Mortgage-Backed Securities Loss Model and Rating Methodology
• Unified Interest Rate Model for U.S. RMBS Transactions
• Third-Party Due Diligence Criteria for U.S. RMBS Transactions
• Representations and Warranties Criteria for U.S. RMBS Transactions
• Legal Criteria for U.S. Structured Finance Transactions

The full report providing additional analytical detail is available by clicking on the link below or by contacting us at info@dbrs.com.

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.

These ratings are endorsed by DBRS Ratings Limited for use in the European Union.