DBRS Assigns New Rating of BBB (sf) to Series 2016-1 Notes and Discontinues Series 2012-1 Ratings Issued by LStreet II, LLC

DBRS, Inc. (DBRS) has today discontinued the ratings on the Series 2012-1 Class A-1 Notes, Series 2012-1 Class A-2 Notes, Series 2012-1 Class A-3 Notes and Series 2012-1 Class A-4 Notes (together, the Existing Series 2012-1 Class A Notes) issued by LStreet II, LLC. DBRS has also assigned a new rating of BBB (sf) to the Series 2016-1 Class A Notes issued by LStreet II, LLC, pursuant to the Series 2016-1 Supplement to the Base Indenture dated as of August 3, 2016.

The Series 2016-1 Notes consist of the Series 2016-1 Class A Notes and the unrated Series 2016-1 Class B Deferrable Notes (together, the Series 2016-1 Notes). The Series 2016-1 Notes will be issued in exchange for the Existing Series 2012-1 Notes plus cash proceeds. The Existing Series 2012-1 Notes were repaid in full by way of the issuance of the new Series 2016-1 Notes.

The Series 2016-1 Class A Notes are collateralized by the Class A-1A and Class A-1B Notes of Monroe Harbor CDO 2005-1, Ltd., which is itself collateralized by a pool of subprime and Alt-A residential mortgage-backed securities.

The ratings address (1) the likelihood of the Series 2016-1 Class A noteholders receiving all principal distributions to which such noteholders are entitled and (2) the likelihood of the Series 2016-1 Class A noteholders receiving the amount of Series 2016-1 Class A Interest to which such noteholders are entitled in each case, to the extent payable to the Series 2016-1 Class A Notes in accordance with the priorities of payment outlined in the Series 2016-1 Supplement to the Base Indenture on or before the Final Maturity Date in December 2040.

For the avoidance of doubt, the rating on the 2016-1 Class A Notes addresses the ultimate payment of Series 2016-1 Class A Principal and the timely payment of Series 2016-1 Class A Interest (one-month LIBOR plus 0.25% per annum). The DBRS rating does not address any other amounts that may be paid to the Series 2016-1 Class A noteholders, including but not limited to the Series 2016-1 Class A Additional Amount.

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

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

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

The rated entity or its related entities did not participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.