DBRS Downgrades and Assigns Ratings to the Series 2012-9 Notes Issued by LStreet II, LLC

DBRS, Inc. (DBRS) downgraded the ratings on the Series 2012-9 Class A-1 Notes, Series 2012-9 Class A-2 Notes, Series 2012-9 Class A-3 Notes, Series 2012-9 Class A-4 Notes and the Series 2012-9 Class A-5 Notes issued by LStreet II, LLC (LStreet II) to A (sf) from AA (low) (sf). DBRS also assigned a new rating of A (sf) to the Series 2012-9 Class A-6 Notes (together with Classes A-1 through A-5, the Series 2012-9 Class A Notes) issued by LStreet II, LLC, pursuant to the Fifth Amended and Restated Series 2012-9 Supplement to the Base Indenture, dated as of November 30, 2017.

The Series 2012-9 Class A Notes are collateralized by the Class A-1LT-a and the Class A-1LT-b Notes of Adirondack 2005-1, Ltd., which is itself collateralized primarily by a pool of sub-prime and Alt-A residential mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities and collateralized loan obligations.

The ratings address (1) the likelihood of the Series 2012-9 Class A Noteholders receiving all principal distributions to which such noteholders are entitled and (2) the likelihood of the Series 2012-9 Class A Noteholders receiving the amount of Series 2012-9 Class A Interest to which such noteholders are entitled in each case, to the extent payable to the Series 2012-9 Class A Notes in accordance with the priorities of payment outlined in the Amended and Restated Series 2012-9 Supplement to the Base Indenture on or before the Final Maturity Date in July 2040.

For the avoidance of doubt, the above DBRS ratings address the ultimate payment of the Series 2012-9 Class A-1 Principal, Series 2012-9 Class A-2 Principal, Series 2012-9 Class A-3 Principal, Series 2012-9 Class A-4 Principal, Series 2012-9 Class A-5 Principal, and Series 2012-9 Class A-6 Principal (initial par of $150,0000,000 as of November 20, 2012; $100,000,000 as of April 4, 2014; $55,000,000 as at December 22, 2014; $42,000,0000 as of January 28, 2016; $71,500,000 as of April 26, 2017; and $29,000,000 as of November 30, 2017 respectively), and the timely payment of the Series 2012-9 Class A-1 Interest, the Series 2012-9 Class A-2 Interest, the Series 2012-9 Class A-3 Interest, the Series 2012-9 Class A-4 Interest, the Series 2012-9 Class A-5 Interest, and the Series 2012-9 Class A-6 Interest (three-month LIBOR plus 0.34% per annum for all Series 2012-9 Class A Notes).

The DBRS ratings do not address any other amounts that may be paid to the Series 2012-9 Class A Noteholders, including, but not limited to, the Series 2012-9 Class A-1 Additional Amount, Series 2012-9 Class A-2 Additional Amount, Series 2012-9 Class A-3 Additional Amount, Series 2012-9 Class A-4 Additional Amount, Series 2012-9 Class A-5 Additional Amount, or Series 2012-9 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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