KBRA Assigns Preliminary Ratings to OneMain Financial Trust Notes

Summary

KBRA has assigned preliminary ratings to four classes of notes issued by OneMain Financial Issuance Trust 2025-1, with a total amount of $600 million. The ratings reflect credit enhancement levels ranging from 35.25% for Class A notes to 11.45% for Class D notes. This marks OneMain’s first consumer loan asset-backed securities (ABS) securitization in 2025 and the 31st since 2013. The transaction includes a three-year revolving collateral purchase period. OneMain Holdings, Inc. is a consumer finance company listed on the NYSE under the ticker ‘OMF’ MorningStar.

Impact Analysis

The event involves OneMain Financial’s new ABS issuance which has been rated by KBRA. This securitization provides OneMain with liquidity and reflects its ability to continue to leverage its consumer loan portfolio. The credit enhancement levels indicate a stable risk profile for investors, enhancing market confidence in OneMain’s financial products. The revolving collateral purchase period allows OneMain flexibility in managing its collateral pool over the next three years. This move is strategic for maintaining operational liquidity and supporting growth in consumer finance. For investors, the rating offers a metric to assess the risk-return profile of the securities, potentially impacting OMF’s stock perception as it demonstrates financial robustness and strategic planning MorningStar.