OneMain Financial Issuance Trust 2019-1 Notes Assigned Preliminary Ratings

OVERVIEW
  • OneMain Financial Issuance Trust 2019-1's issuance is an ABS transaction backed by personal consumer loan receivables.
  • We assigned our preliminary ratings to the class A, B, C, D, and E notes.
  • The preliminary ratings reflect our view of the transaction's credit support, pool characteristics, and OneMain Holdings Inc.'s business model, among other factors.
 
DALLAS (S&P Global Ratings) Jan. 10, 2019--S&P Global Ratings today assigned 
its preliminary ratings to OneMain Financial Issuance Trust 2019-1's personal 
consumer loan-backed notes (see list).

The note issuance is an asset-backed securities transaction backed by personal 
consumer loan receivables.

The preliminary ratings are based on information as of Jan. 10, 2019. 
Subsequent information may result in the assignment of final ratings that 
differ from the preliminary ratings.

The preliminary ratings reflect: 
  • The availability of approximately 53.0%, 46.1%, 41.4%, 33.5%, and 27.2% credit support to the class A, B, C, D, and E notes, respectively, in the form of subordination, overcollateralization, a reserve account, and excess spread (see the Credit Enhancement Summary table above for more information). These credit support levels are sufficient to withstand stresses commensurate with the preliminary ratings on the notes based on our stressed cash flow scenarios (see the S&P Global Ratings' Expected Loss section for more information).
  • Our expectation that under a moderate ('BBB') stress scenario, all else being equal, our ratings on the class A and B notes will remain within one rating category of the assigned preliminary 'AAA (sf)' and 'AA (sf)' ratings, respectively, for the life of the deal; our ratings on the class C and D notes will remain within two rating categories of the assigned preliminary 'A (sf)' and 'BBB (sf)', respectively, for the life of the deal; and our rating on the class E notes will remain within two rating category of the assigned preliminary 'BB (sf)' rating in the next 12 months but the class would ultimately default under a BBB scenario. The above rating movements are within the one-category rating tolerance for 'AAA' and 'AA' rated securities and a two-category rating tolerance for 'A', 'BBB', and 'BB' rated securities during the first year; 'BB' rated securities are permitted to default within three years under a 'BBB' stress scenario (see "Methodology: Credit Stability Criteria," May 3, 2010).
  • The timely interest and full principal payments expected to be made under stressed cash flow modeling scenarios appropriate to the assigned preliminary ratings.
  • The characteristics of the pool being securitized and receivables expected to be purchased during the revolving period.
  • The transaction's payment and legal structures.