KBRA Assigns Preliminary Ratings to OneMain Financial Issuance Trust 2022-S1

NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to four classes of bonds issued by OneMain Financial Issuance Trust 2022-S1 (“OMFIT 2022-S1”), a consumer loan-backed securities transaction. OMFIT 2022-S1 will issue four classes of notes totaling $500.0 million. Preliminary ratings reflect initial levels of credit enhancement ranging from 33.96% for Class A Notes to 8.41% for Class D Notes.

This transaction represents the first consumer loan, term ABS securitization issued by OneMain Finance Corporation (“OneMain” or “OMFC”, or the “Company”) in 2022. OneMain has also issued 24 consumer loans and six term securitizations of automobile loans through its subsidiaries. since 2013. OMFIT 2022-S1 represents the company’s first ABS aligned with the 2021 Social Bond Principles administered by the International Capital Market Association, as the issuer intends to use the proceeds of the issuance for a qualifying social project that provides or promotes access to essential services and/or socio-economic advancement and empowerment.

OneMain Holdings, Inc. (“OMH”) is a consumer finance company that offers loan products through a nationwide branch network and through its online platform. OMH completed its acquisition of OneMain Financial Holdings, LLC on November 15, 2015 from CitiFinancial Credit Company for $4.49 billion in cash. OMH is now listed on the NYSE under the symbol “OMF”.

KBRA applied its ABS Global Rating Methodology for Consumer Lending, its Global Structured Finance Counterparty Methodology and its ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and credit structure. proposed capital. KBRA reviewed its operational review of OneMain, as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.

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Further information on key credit considerations, sensitivity analyzes that consider factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine the credit rating are available in the information disclosure form(s) located here.

Information on the meaning of each rating category can be found here.

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.

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