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)



    Class                                     Balance/Notional Amount ($)             Morningstar Preliminary Rating
    -----                                     ---------------------------             ------------------------------

    Class A-1                                                             240,000,000                               A

    Class A-2                                                              55,000,000                            BBB-

    Class B Income Notes                                                  278,387,056                              NR



    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 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 16 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 $180 billion in assets under advisement and management as of June 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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SOURCE Morningstar, Inc.