DBRS Morningstar Confirms Ratings on the Series 2012-9 Notes Issued by LStreet II, LLC

DBRS, Inc. (DBRS Morningstar) confirmed its ratings of AA (sf) on each of the Series 2012-9 Class A-1 Notes, the Series 2012-9 Class A-2 Notes, the Series 2012-9 Class A-3 Notes, the Series 2012-9 Class A-4 Notes, the Series 2012-9 Class A-5 Notes, the Series 2012-9 Class A-6 Notes, and the Series 2012-9 Class A-7 Notes (collectively, the Series 2012-9 Class A Notes), issued by LStreet II, LLC (the Issuer) pursuant to the Sixth Amended and Restated Series 2012-9 Supplement dated as of May 21, 2020, which was entered into between LStreet II, LLC as Issuer and Deutsche Bank Trust Company Americas as Trustee.

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 Class A Noteholders receiving all principal distributions to which such noteholders are entitled and (2) the likelihood of the 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 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 May 2041.

For the avoidance of doubt, the above DBRS Morningstar 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, Series 2012-9 Class A-6 Principal, and Series 2012-9 Class A-7 Principal (initial par of $150,000,000 as of November 20, 2012; $100,000,000 as of April 4, 2014; $55,000,000 as at December 22, 2014; $42,000,000 as of January 28, 2016; $71,500,000 as of April 26, 2017; $29,000,000 as of November 30, 2017; and $70,000,000 as of May 21, 2020, respectively) and the timely payment of the Series 2012-9 Class A-1 Interest, Series 2012-9 Class A-2 Interest, Series 2012-9 Class A-3 Interest, Series 2012-9 Class A-4 Interest, Series 2012-9 Class A-5 Interest, Series 2012-9 Class A-6 Interest, and Series 2012-9 Class A-7 Interest (three-month Libor plus 0.34% per annum for all the Series 2012-9 Class A Notes).

The DBRS Morningstar ratings do not address any other amounts that may be paid to the Class A Noteholders, including, but not limited to, the Series 2012-9 Class A-1 Additional Amount, the Series 2012-9 Class A-2 Additional Amount, the Series 2012-9 Class A-3 Additional Amount, the Series 2012-9 Class A-4 Additional Amount, the Series 2012-9 Class A-5 Additional Amount, the Series 2012-9 Class A-6 Additional Amount, or the Series 2012-9 Class A-7 Additional Amount.

There were no Environmental, Social, or Governance (ESG) factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodologies are Rating Structured Finance CDO Restructurings (November 12, 2020) and Cash Flow Assumptions for Corporate Credit Securitizations (January 26, 2022), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The DBRS Morningstar Sovereigns group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts with the baseline scenarios set forth in the following report: https://www.dbrsmorningstar.com/research/384150.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar 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.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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