Morningstar Expands Analytics to Residential Mortgage-Backed Securities

Morningstar's structured credit ratings business is introducing a residential mortgage-backed securities (RMBS) ratings and surveillance analytics service.

The service, RMBS Ratings and Analytics, will provide institutional investors with 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.    

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.    

“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,” said Robert Dobilas, President of Morningstar’s structured credit ratings business.

Investors interested in scheduling a demonstration of RMBS Ratings and Analytics can contact Morningstar at 800-299-1665 or