DBRS Confirms Ratings on the LStreet II Series 2012-7 Notes

DBRS, Inc. (DBRS) confirmed the ratings on the Series 2012-7 Class A-1 Notes, Series 2012-7 Class A-2 Notes, Series 2012-7 Class A-3 Notes, Series 2012-7 Class A-4 Notes, and Series 2012-7 Class A-5 Notes (together, the Series 2012-7 Class A Notes) issued by LStreet II, LLC at AA (sf), pursuant to the Fourth Amended and Restated Series 2012-7 Supplement to the Base Indenture dated as of April 27, 2017.

The Series 2012-7 Class A Notes are collateralized by the Class A-1 Notes of Jupiter High-Grade CDO II, 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 2012-7 Class A Noteholders receiving all principal distributions to which such noteholders are entitled and (2) the likelihood of the Series 2012-7 Class A Noteholders receiving the amount of Series 2012-7 Class A Interest to which such noteholders are entitled in each case, to the extent payable to the Series 2012-7 Class A Notes in accordance with the priorities of payment outlined in the Amended and Restated Series 2012-7 Supplement to the Base Indenture on or before the Final Maturity Date in May 2041.

For the avoidance of doubt, the above DBRS ratings address the ultimate payment of the Series 2012-7 Class A-1 Principal, Series 2012-7 Class A-2 Principal, Series 2012-7 Class A-3 Principal, 2012-7 Class A-4 Principal and 2012-7 Class A-5 Principal (initial par of $135,0000,000 as at November 13, 2012; $58,000,000 as at September 10, 2013; $45,000,000 as at December 11, 2014; $38,000,0000 as at January 19, 2016; and $52,000,000 as at April 27, 2017, respectively) and the timely payment of the Series 2012-7 Class A-1 Interest, the Series 2012-7 Class A-2 Interest, the Series 2012-7 Class A-3 Interest, the Series 2012-7 Class A-4 Interest and the Series 2012-7 Class A-5 Interest (three-month LIBOR plus 0.27% per annum for all Series 2012-7 Class A Notes).

The DBRS ratings do not address any other amounts that may be paid to the Series 2012-7 Class A Noteholders, including, but not limited to, the Series 2012-7 Class A-1 Additional Amount, Series 2012-7 Class A-2 Additional Amount, Series 2012-7 Class A-3 Additional Amount, Series 2012-7 Class A-4 Additional Amount or Series 2012-7 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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

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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