DBRS Morningstar Confirms Ratings of the Series 2016-1 Notes Issued by LStreet II, LLC

DBRS, Inc. (DBRS Morningstar) confirmed the ratings on the Series 2016-1 Class A-1 Notes and the Series 2016-1 Class A-2 Notes (together, the Series 2016-1 Class A Notes) issued by LStreet II, LLC at AA (sf), pursuant to the Amended and Restated Series 2016-1 Supplement to the Base Indenture dated as of November 22, 2017.

The Series 2016-1 Notes consist of the Series 2016-1 Class A Notes and the unrated Series 2016-1 Class B Deferrable Notes.

The Series 2016-1 Class A Notes are collateralized by the Class A-1A and Class A-1B Notes of Monroe Harbor CDO 2005-1, Ltd., which is itself collateralized by a pool of subprime and Alt-A residential mortgage-backed securities.

The ratings address (1) the likelihood of the Series 2016-1 Class A Noteholders receiving all principal distributions to which such noteholders are entitled and (2) the likelihood of the Series 2016-1 Class A Noteholders receiving the amount of Series 2016-1 Class A Interest to which such noteholders are entitled in each case, to the extent payable to the Series 2016-1 Class A Notes in accordance with the priorities of payment outlined in the Amended and Restated Series 2016-1 Supplement to the Base Indenture on or before the Final Maturity Date in December 2040.

For the avoidance of doubt, the ratings on the Series 2016-1 Class A Notes address the ultimate payment of Series 2016-1 Class A Principal and the timely payment of the Series 2016-1 Class A Interest (three-month LIBOR plus 0.25% per annum). The DBRS Morningstar ratings do not address any other amounts that may be paid to the Series 2016-1 Class A Noteholders, including, but not limited to, the Series 2016-1 Class A Notes 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 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.dbrs.com or contact us at info@dbrs.com.

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