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KBRA Assigns Preliminary Ratings to OneMain Direct Auto Receivables Trust 2018-1

July 13, 2018

NEW YORK--(BUSINESS WIRE)--Jul 13, 2018--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by OneMain Direct Auto Receivables Trust 2018-1 (“ODART 2018-1”) an auto loan ABS transaction.

The collateral in the ODART 2018-1 deal will include approximately $535.69 million of loans at closing. The preliminary ratings reflect the initial credit enhancement levels ranging from 27.75% for the Class A notes to 2.25% for the Class D notes, which build over time. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account and excess spread. The transaction will also include a two-year revolving period, during which additional loans may be funded as long as they comply with certain eligibility criteria.

This transaction represents the fourth auto loan ABS securitization that KBRA has rated for OneMain Financial Holdings, LLC (collectively, with OneMain Financial Group, LLC and its subsidiaries and affiliates, “OneMain” or the “Company”) and third auto loan ABS securitization sponsored by Springleaf Finance Corporation (“SFC”). OneMain has issued eighteen consumer loan term securitizations through its subsidiaries since 2013.

KBRA applied its Global Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and OneMain’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, , which was published today at .

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled .

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180713005347/en/

CONTACT: Analytical:

Kroll Bond Rating Agency

Haksun Kim, 646-731-2412

Director

hkim@kbra.com

or

Alla Mikhalevsky, 646-731-3356

CFA, Associate Director

amikhalevsky@kbra.com

or

Pritam Patel, 646-731-3374

Senior Analyst

ppatel@kbra.com

or

Andrew Silverhardt, 646-731-2492

Senior Analyst

asilverhardt@kbra.com

or

Rosemary Kelley, 646-731-2337

Senior Managing Director

rkelley@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2018.

PUB: 07/13/2018 11:47 AM/DISC: 07/13/2018 11:47 AM

http://www.businesswire.com/news/home/20180713005347/en

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