DBRS Discontinues Rating on LStreet II, LLC Series 2012-16 Class A-5 Notes

DBRS, Inc. (DBRS) discontinued the rating on the Series 2012-16 Class A-5 Notes issued by LStreet II, LLC (the Series 2012-16 Class A Notes). The Series 2012-16 Class A Notes were issued by LStreet II, LLC pursuant to the Fourth Amended and Restated Series 2012-16 Supplement to the Base Indenture dated as of April 5, 2017.

The discontinuation reflects repayment in full of the Series 2012-16 Class A Notes.

The Series 2012-16 Class A Notes were collateralized by the Class A-1 Notes of Verde CDO, Ltd., which is itself collateralized by a pool of subprime and Alt-A residential mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities.

The rating addressed (1) the likelihood of the Series 2012-16 Class A Noteholders receiving all principal distributions to which such noteholders are entitled and (2) the likelihood of the Series 2012-16 Class A Noteholders receiving the amount of Series 2012-16 Class A Interest to which such noteholders are entitled in each case, to the extent payable to the Series 2012-16 Class A Notes, in accordance with the priorities of payment outlined in the Amended and Restated Series 2012-16 Supplement to the Base Indenture on or before the Final Maturity Date in October 2045.

For the avoidance of doubt, the above DBRS rating addressed the ultimate payment of the Series 2012-16 Class A-5 Principal ($33,000,000 as of April 5, 2017) and the timely payment of the Series 2012-16 Class A-5 Interest (three-month LIBOR plus 0.23% per annum for the Series 2012-16 Class A Notes).

The DBRS ratings did not address any other amounts that may be paid to the Series 2012-16 Class A Noteholders, including, but not limited to, the Series 2012-16 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 & Criteria.

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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