KBRA Assigns Preliminary Ratings to OneMain Direct Auto Receivables Trust 2019-1

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four
classes of notes issued by OneMain Direct Auto Receivables Trust 2019-1
(“ODART 2019-1”) an auto loan ABS transaction.

The collateral in the ODART 2019-1 deal will include approximately
$535.73 million of loans at closing. The preliminary ratings reflect the
initial credit enhancement levels ranging from 29.40% 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 five-year revolving period, during which
additional loans may be funded as long as they comply with certain
eligibility criteria.

This transaction represents the fifth 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 fourth auto loan ABS securitization
sponsored by Springleaf Finance Corporation (“SFC”). OneMain has issued
nineteen 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.

To access ratings, reports and disclosures, click here.


Preliminary Ratings Assigned: OneMain Direct Auto Receivables
Trust 2019-1


Preliminary Rating


Expected Initial Principal

A     AAA (sf)     $380,900,000
B     AA+ (sf)     $64,010,000
C     AA (sf)     $42,590,000
D     AA- (sf)     $38,840,000

Related Publications: (available at www.kbra.com)


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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
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is 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.


Analytical Contacts:

Alla Mikhalevsky, CFA, Director
(646) 731-3356

Andrew Silverhardt, Senior Analyst
(646) 731-2492

Melvin Zhou, CFA, Director
(646) 731-2412

Rosemary Kelley, Senior Managing Director
(646) 731-2337

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