DBRS Confirms Ratings of and Assigns Rating to the Series 2012-4 Notes Issued by LStreet II, LLC

DBRS, Inc. (DBRS) confirmed the ratings on the Series 2012-4 Class A-1 Notes, Series 2012-4 Class A-2 Notes, Series 2012-4 Class A-3 Notes, Series 2012-4 Class A-4 Notes and the Series 2012-4 Class A-5 Notes issued by LStreet II, LLC (LStreet II) at AA (low) (sf). DBRS also assigned a new rating of AA (low) (sf) to the Series 2012-4 Class A-6 Notes (together with Classes A-1 through A-5, the Series 2012-4 Class A Notes) issued by LStreet II, LLC, pursuant to the Fifth Amended and Restated Series 2012-4 Supplement to the Base Indenture, dated as of November 30, 2017.

The Series 2012-4 Class A Notes are collateralized by the Class A-1VA, Class A-1VB and the Class A-1NV Notes of Jupiter High-Grade CDO III, Ltd., which is itself collateralized by a pool of sub-prime and Alt-A residential mortgage-backed securities and commercial mortgage-backed securities.

The ratings address (1) the likelihood of the Series 2012-4 Class A noteholders receiving all principal distributions to which such noteholders are entitled and (2) the likelihood of the Series 2012-4 Class A Noteholders receiving the amount of Series 2012-4 Class A Interest to which such noteholders are entitled in each case, to the extent payable to the Series 2012-4 Class A Notes in accordance with the priorities of payment outlined in the Amended and Restated Series 2012-4 Supplement to the Base Indenture on or before the Final Maturity Date in June 2042.

For the avoidance of doubt, these DBRS ratings address the ultimate payment of the Series 2012-4 Class A-1 Principal, Series 2012-4 Class A-2 Principal, Series 2012-4 Class A-3 Principal, Series 2012-4 Class A-4 Principal, Series 2012-4 Class A-5 Principal, and Series 2012-4 Class A-6 Principal (initial par of $335,000,000 as of November 7, 2012; $178,000,000 as of November 1, 2013; $125,000,000 as of November 3, 2014; $80,000,000 as of November 23, 2015; $131,000,000 as of April 10, 2017; and 25,000,000 as of November 30, 2017, respectively) and the timely payment of the Series 2012-4 Class A-1 Interest, the Series 2012-4 Class A-2 Interest, the Series 2012-4 Class A-3 Interest, the Series 2012-4 Class A-4 Interest, the Series 2012-4 Class A-5 Interest, and the Series 2012-4 Class A-6 Interest (three-month LIBOR plus 0.27% per annum for all Series 2012-4 Class A Notes).

The DBRS ratings do not address any other amounts that may be paid to the Series 2012-4 Class A Noteholders, including, but not limited to, the Series 2012-4 Class A-1 Additional Amount, Series 2012-4 Class A-2 Additional Amount, Series 2012-4 Class A-3 Additional Amount, Series 2012-4 Class A-4 Additional Amount, Series 2012-4 Class A-5 Additional Amount, or Series 2012-4 Class A-6 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.

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