KBRA Assigns Preliminary Ratings to OneMain Financial Issuance Trust 2025-1
12 Jun 2025 | New York
KBRA assigns preliminary ratings to four classes of notes issued by OneMain Financial Issuance Trust 2025-1 (“OMFIT 2025-1”), an consumer loan ABS transaction.
OMFIT 2025-1 will issue four classes of notes totaling $600.0 million. The preliminary ratings reflect initial credit enhancement levels ranging from 35.25% for the Class A notes to 11.45% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account and excess spread. This transaction represents the first consumer loan ABS securitization issued by OneMain Finance Corporation (“OneMain” or “OMFC”, or the “Company”), a wholly-owned subsidiary of OneMain Holdings, Inc. (“OMH”), in 2025 and the 31st consumer loan transaction issued by OneMain or its subsidiaries since 2013. Since that time, OneMain and its subsidiaries have also issued 39 auto loan term securitizations. OMFIT 2025-1 includes a three year revolving period during which collections may be used to purchase new collateral so long as it meets the eligibility criteria and reinvestment criteria.
OneMain Holdings, Inc. (“OMH”) is a consumer finance company which offers loan products through a nationwide network of branches 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 ticker symbol “OMF”.
KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the capital structure using stressed cash flow assumptions. KBRA considered its operational review of OneMain, a swell as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
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