DBRS Downgrades Ratings of and Assigns Rating to the Series 2012-15 Class A-5 Notes Issued by LStreet II, LLC

DBRS, Inc. (DBRS) has today downgraded the ratings on the Series 2012-15 Class A-1 Notes, Series 2012-15 Class A-2 Notes, Series 2012-15 Class A-3 Notes and Series 2012-15 Class A-4 Notes issued by LStreet II, LLC to A (sf) from AA (high) (sf). DBRS has also assigned a new rating of A (sf) to the Series 2012-15 Class A-5 Notes (together with the aforementioned notes, the Series 2012-15 Class A Notes) issued by LStreet II, LLC pursuant to the Fourth Amended and Restated Series 2012-15 Supplement to the Base Indenture dated as of April 24, 2017.

The Series 2012-15 Class A Notes are collateralized by the Class A-1 Notes of Summer Street 2005-HG1, Ltd., which is itself collateralized primarily by a pool of subprime and Alt-A residential mortgage-backed securities.

The ratings address (1) the likelihood of the Series 2012-15 Class A Noteholders receiving all principal distributions to which such noteholders are entitled and (2) the likelihood of the Series 2012-15 Class A Noteholders receiving the amount of Series 2012-15 Class A Interest to which such noteholders are entitled in each case, to the extent payable to the Series 2012-15 Class A Notes in accordance with the priorities of payment outlined in the Amended and Restated Series 2012-15 Supplement to the Base Indenture on or before the Final Maturity Date in December 2045.

For the avoidance of doubt, the above DBRS ratings address the ultimate payment of the Series 2012-15 Class A-1 Principal, Series 2012-15 Class A-2 Principal, Series 2012-15 Class A-3 Principal, Series 2012-15 Class A-4 Principal and Series 2012-15 Class A-5 Principal (initial par of $64,000,000 as at December 18, 2012; $24,000,000 as at March 21, 2014; $17,000,000 as at January 22, 2015; $18,000,000 as at December 11, 2015; and $77,000,000 as of April 24, 2017, respectively) and the timely payment of the Series 2012-15 Class A-1 Interest, the Series 2012-15 Class A-2 Interest, the Series 2012-15 Class A-3 Interest, the Series 2012-15 Class A-4 Interest and the Series 2012-15 Class A-5 Interest (three-month LIBOR plus 0.23% per annum for all Series 2012-15 Class A Notes).

The DBRS ratings do not address any other amounts that may be paid to the Series 2012-15 Class A Noteholders, including, but not limited to, the Series 2012-15 Class A-1 Additional Amount, Series 2012-15 Class A-2 Additional Amount, Series 2012-15 Class A-3 Additional Amount, Series 2012-15 Class A-4 Additional Amount or Series 2012-15 Class A-5 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 dbrs.com under Methodologies.

This rating was not initiated at the request of the rated entity.

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.

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