Morningstar Announces RMBS Ratings and Analytics, an Investor Focused Surveillance Service for Residential Mortgage-Backed Securities Investors

CHICAGO, Oct. 11, 2011 /PRNewswire/ -- Morningstar, Inc.'s (NASDAQ: MORN) structured credit ratings business will unveil its residential mortgage-backed securities (RMBS) ratings and surveillance analytics service at the upcoming ABS East conference in Miami Oct. 16 to Oct. 19.  The new service, RMBS Ratings and Analytics, will provide institutional investors with cutting edge analytics, Morningstar's monthly DealView Credit Analysis, and timely letter ratings on thousands of secondary market RMBS transactions.  The service will be focused toward the investor community, and will improve market transparency, ratings stability, and especially the timeliness of surveillance reviews and ratings updates.  

Robert Dobilas, president of Morningstar's structured credit ratings business said, "Before the recent credit crisis, the traditional rating agencies considered a transaction to be performing normally unless it broke an "exception" threshold, in which case it would then be subject to a full surveillance review.  In today's dynamic post-crisis mortgage world, the passive surveillance routine of the past is no longer acceptable. Investors are demanding a surveillance process that is proactive, timely, and transparent.  RMBS investors need comprehensive, up-to-date information about the potential credit risk of their RMBS investments."

Each Morningstar RMBS rating will undergo a rating review every month, which will allow the analysis to quickly reflect market changes.  In addition to Morningstar's monthly DealView analysis and letter ratings, the new service will feature an interactive statistical model with investor-driven assumption capabilities, updated performance data, default probabilities, and loss severity projections.  

"We built our reputation in structured finance by providing investors with the gold standard of analysis for CMBS securities, a market that was traditionally underserved by the other rating agencies," said Dobilas.  "Our CMBS analytics changed the way investors conducted surveillance of their portfolios and performed reviews of secondary market investment opportunities.  With RMBS Ratings and Analytics, we intend to do the same for the RMBS market."  

Investors interested in scheduling a demonstration of RMBS Ratings and Analytics should contact Morningstar at 800-299-1665 or [email protected]. Investors are also encouraged to visit the Morningstar Exhibit at the 2011 ABS East Conference for a demonstration.    

About Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individuals, financial advisors, and institutions. Morningstar provides data on approximately 400,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 5 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 registered investment advisor subsidiaries and has nearly $180 billion in assets under advisement and management as of June 30, 2011. The company has operations in 26 countries.

The RMBS ratings practice is part of Morningstar Credit Ratings, LLC, Morningstar Inc.'s structured credit research and ratings subsidiary, a Nationally Recognized Statistical Rating Organization (NRSRO).

©2011 Morningstar, Inc. All rights reserved.

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SOURCE Morningstar, Inc.