DBRS Morningstar Discontinues Ratings of the Series 2012-6 Notes Issued by LStreet II, LLC

DBRS, Inc. (DBRS Morningstar) discontinued the ratings of 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 (collectively, the Class A Notes) issued by LStreet II, LLC. The discontinuation reflects the repayment in full of the Class A Notes.

The Class A Notes were collateralized by the Class A-1V and the Class A-1NV Notes of Kleros Preferred Funding II, Ltd., which itself was collateralized by a pool of subprime, Alt-A residential mortgage-backed securities and commercial mortgage-backed securities.

The ratings addressed (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 the Series 2012-6 Class A Interest, which such noteholders were 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 Morningstar ratings addressed 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, Series 2012-6 Class A-2 Interest, Series 2012-6 Class A-3 Interest, and 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 Morningstar ratings did not address any other amounts that may be paid to the 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 & 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.

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