Morningstar Credit Ratings Assigns Preliminary Ratings for LSTAR Securities Investment Ltd. 2015-8 and LSTAR Securities Investment 2015-8, LLC (LSTAR 2015-8)

Aug 18, 2015, 15:07 ET from Morningstar, Inc.

NEW YORK, Aug. 18, 2015 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for two classes of residential notes from LSTAR Securities Investment Ltd. 2015-8 and LSTAR Securities Investment 2015-8, LLC (the LSTAR 2015-8 transaction), a resecuritization of previously issued residential mortgage-backed securities (RMBS). The preliminary ratings are based on information known to Morningstar as of Aug. 18, 2015.


Preliminary Ratings (as of Aug. 18, 2015)



Balance/Notional Amount ($)

Morningstar Preliminary Rating

Class A-1



Class A-2



Class B Income Notes



NR – Not Rated


The collateral backing the LSTAR 2015-8 notes consists of previously issued RMBS backed by seasoned subprime, Alt-A, and second-lien residential mortgages. The ratings of Class A-1 and Class A-2 reflect the credit enhancement provided by 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 notes represents the amount of overcollateralization with respect to Class A-1 and Class A-2. The initial principal balance of the Class B notes is approximately 48.55 percent of the aggregate principal balance of the underlying securities, as of their distribution dates in July 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 RMBS tab in the Ratings Reports section at 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.

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Morningstar, Inc. is not an NRSRO and does not issue NRSRO credit ratings.

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