TEXT-S&P takes various rating actions on Tokai Labour Bank Series 2

Today's rating actions are part of our regular review. In analyzing the credit quality of the above transaction, we examined primarily the performance data contained in the reports that we receive each month from the servicer. Through this review we confirmed that the transaction's credit enhancement levels have increased, reflecting performance that is better than we expected, as well as progress in the redemption of principal on the rated senior trust certificates. Accordingly, we today upgraded the mezzanine trust certificates 3 and the subordinate trust certificates 1 to 6, and affirmed our ratings on the senior trust certificates class 2 and the mezzanine trust certificates 1 and 2.

The ratings reflect our opinion on the likelihood of the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date in December 2040 for the senior trust certificates, the full payment of interest and the ultimate repayment of principal by the legal final maturity date for the mezzanine trust certificates, and the ultimate repayment of principal by the legal final maturity date for the subordinate trust certificates.

RELATED CRITERIA AND RESEARCH

"Japanese Structured Finance Scenario And Sensitivity Analysis: The Effects Of Major Macroeconomic Factors," April 6, 2012 "Principles Of Credit Ratings," Feb. 16, 2011 "Rating Methodology For Residential Mortgage-Backed Securities In Japan," Aug. 19, 2007

RATINGS RAISED

Tokai Labour Bank Series 2 Residential Mortgage Backed Trust Certificates

Residential mortgage backed trust certificates due December 2040

Class To From Initial issue amount

Mezzanine trust certificates 3* AA (sf) A+ (sf) JPY0.4 bil.

Subordinate trust certificates 1(4) AA (sf) A+ (sf) JPY0.1 bil.

Subordinate trust certificates 2(4) AA- (sf) A (sf) JPY0.1 bil.

Subordinate trust certificates 3(4) A+ (sf) A (sf) JPY0.1 bil.

Subordinate trust certificates 4(4) A (sf) A- (sf) JPY0.1 bil.

Subordinate trust certificates 5(4) A- (sf) BBB+ (sf) JPY0.1 bil.

Subordinate trust certificates 6(4) BBB+ (sf) BBB (sf) JPY0.1 bil.

*Deferred interest

(4)No dividends

RATINGS AFFIRMED

Tokai Labour Bank Series 2 Residential Mortgage Backed Trust Certificates

Class Rating Initial issue amount

Senior trust certificates Class 2 AAA (sf) JPY15.0 bil.

Mezzanine trust certificates 1* AAA (sf) JPY0.7 bil.

Mezzanine trust certificates 2* AAA (sf) JPY0.4 bil.

*Deferred interest