DBRS Confirms Ratings on Series 2012-6 Notes Issued by LStreet II, LLC

DBRS, Inc. (DBRS) confirmed the ratings of AA (sf) on the Series 2012-6 Class A-1 Notes, Series 2012-6 Class A-2 Notes, Series 2012-6 Class A-3 Notes and Series 2012-6 Class A-4 Notes issued by LStreet II, LLC, pursuant to the Third Amended and Restated Series 2012-6 Supplement to the Base Indenture dated as of January 11, 2016.

The Series 2012-6 Class A Notes are collateralized by the Class A-1V and the Class A-1NV Notes of Kleros Preferred Funding II, Ltd., which itself is collateralized by a pool of sub-prime, Alt-A residential mortgage-backed securities and commercial mortgage-backed securities.

The ratings address (1) the likelihood of the Series 2012-6 Class A noteholders receiving all principal distributions, which such noteholders are entitled to, and (2) the likelihood of the Series 2012-6 Class A noteholders receiving the amount of Series 2012-6 Class A Interest, which such noteholders are entitled to in each case, to the extent payable to the Series 2012-6 Class A Notes, in accordance with the priorities of payment outlined in the Amended and Restated Series 2012-6 Supplement to the Base Indenture on or before the Final Maturity Date in December 2042.

For the avoidance of doubt, these DBRS ratings address the ultimate payment of the Series 2012-6 Class A-1 Principal, Series 2012-6 Class A-2 Principal, Series 2012-6 Class A-3 Principal and 2012-6 Class A-4 Principal (initial par of $145 million as of November 9, 2012; $125.5 million as of October 29, 2013; $25 million as of December 15, 2014; and $45 million as of January 11, 2016, respectively), and the timely payment of the Series 2012-6 Class A-1 Interest, the Series 2012-6 Class A-2 Interest, the Series 2012-6 Class A-3 Interest and the Series 2012-6 Class A-4 Interest (three-month LIBOR, plus 0.27% per annum for all Series 2012-6 Class A Notes).

The DBRS ratings do not address any other amounts that may be paid to the Series 2012-6 Class A noteholders, including, but not limited to, the Series 2012-6 Class A-1 Additional Amount, Series 2012-6 Class A-2 Additional Amount, Series 2012-6 Class A-3 Additional Amount or Series 2012-6 Class A-4 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 is endorsed by DBRS Ratings Limited for use in the European Union.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.