Morningstar Credit Ratings Assigns Preliminary Ratings to LSTAR Securities Investment Ltd. 2016-1 and LSTAR Securities Investment 2016-1, LLC (LSTAR 2016-1)

Jan 21, 2016, 17:04 ET from Morningstar, Inc.

NEW YORK, Jan. 21, 2016 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings to two classes of notes to be issued by LSTAR Securities Investment Ltd. 2016-1 and LSTAR Securities Investment 2016-1, LLC (LSTAR 2016-1), a resecuritization of previously issued residential mortgage-backed securities (RMBS). The preliminary ratings are based on information disclosed and known to Morningstar as of Jan. 21, 2016.

 

Preliminary Ratings (as of Jan. 21, 2016)


Class

Balance/Notional Amount ($)

Morningstar Preliminary Rating

Class A-1

174,500,000

A-

Class A-2

50,000,000

BBB-

Class B Income Notes

251,879,037

NR




NR – Not Rated

The collateral backing the LSTAR 2016-1 notes consists of previously issued RMBS backed by seasoned prime, subprime, Alt-A, option ARM, and second-lien residential mortgages. The rating of the Class A-1 notes reflects the credit enhancement provided by overcollateralization and subordination of both the Class A-2 notes and the Class B income notes. The rating of the Class A-2 notes reflects the credit enhancement provided by overcollateralization and the subordination of the Class B income notes and the quality of the underlying assets. Morningstar did not rate the Class B income notes. The principal balance of the Class B income notes represents the amount of overcollateralization with respect to the Class A-1 and Class A-2 notes. The initial principal balance of the Class B income notes is approximately 52.87 percent of the aggregate principal balance of the underlying securities, as of their distribution dates in December 2015.

Morningstar's Preliminary Analysis Package, including the Ratings Bulletin; Rule 17g-7 Disclosures and Certification; and the Representations, Warranties, and Enforcement Mechanisms, is available under the Structured Finance tab in the Ratings/Surveillance section at https://ratingagency.morningstar.com. Morningstar could receive subsequent information that may result in final ratings that differ from the preliminary ratings.

About Morningstar Credit Ratings, LLC and Morningstar, Inc.
Morningstar Credit Ratings, LLC is a nationally recognized statistical rating organization (NRSRO) offering a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 17 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $170 billion in assets under advisement and management as of Sept. 30, 2015. The company has operations in 27 countries. Morningstar, Inc. is not an NRSRO and does not issue NRSRO credit ratings.

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Media Contact:  Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

 

SOURCE Morningstar, Inc.



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