Press Release

DBRS Finalizes Provisional Ratings on OneMain Financial Issuance Trust 2019-1

Consumer Loans & Credit Cards
January 23, 2019

DBRS, Inc. (DBRS) finalized its provisional ratings on the following classes of notes (the Notes) issued by OneMain Financial Issuance Trust 2019-1 (OMFIT 2019-1 or the Issuer):

-- $430,120,000 Series 2019-1, Class A at AAA (sf)
-- $58,550,000 Series 2019-1, Class B at AA (sf)
-- $37,620,000 Series 2019-1, Class C at A (sf)
-- $47,430,000 Series 2019-1, Class D at BBB (sf)
-- $57,890,000 Series 2019-1, Class E at BB (sf)

The ratings are based on DBRS’s review of the following analytical considerations:

-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the ratings address the payment of timely interest on a monthly basis and principal by the legal final maturity date.
-- OneMain Financial, Inc.’s (OneMain) capabilities with regard to originations, underwriting and servicing.
-- The credit quality of the collateral and performance of OneMain’s consumer loan portfolio. DBRS used a hybrid approach in analyzing the OneMain portfolio that incorporates elements of static pool analysis, employed for assets such as consumer loans, and revolving asset analysis, employed for such assets as credit card master trusts.
-- The legal structure and presence of legal opinions that address the true sale of the assets to the Issuer, the non-consolidation of the special-purpose vehicle with OneMain, that the trust has a valid first-priority security interest in the assets and the consistency with DBRS’s “Legal Criteria for U.S. Structured Finance.”

The OMFIT 2019-1 transaction represents the twelfth securitization of a portfolio of non-prime and subprime personal loans originated through OneMain’s branch network.

Credit enhancement in the transaction consists of overcollateralization (OC), subordination, excess spread and a reserve account. The initial amount of OC is 3.45% of the aggregate loan principal balance. The subordination in the transaction refers to the Class B Notes, Class C Notes, Class D Notes and Class E Notes, which are subordinated to the Class A Notes. The reserve account is 0.50% of the initial loan principal balance. It is funded at inception and is non-declining. Initial Class A credit enhancement of 34.75% includes a 0.50% reserve account, OC of 3.45% and 30.80% subordination. Initial Class B credit enhancement of 25.80% includes a 0.50% reserve account, OC of 3.45% and 21.85% subordination. Initial Class C credit enhancement of 20.05% includes a 0.50% reserve account, OC of 3.45% and 16.10% subordination. Initial Class D credit enhancement of 12.80% includes a 0.50% reserve account, OC of 3.45% and 8.85% subordination. Initial Class E credit enhancement of 3.95% includes a 0.50% reserve account, OC of 3.45% . Interest on the Notes is payable monthly at a fixed rate.

All figures are in U.S. dollars unless otherwise noted.

The principal methodology is Rating U.S. Structured Finance Transactions, which can be found on under Methodologies & Criteria.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at

DBRS, Inc.
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New York, NY 10005 USA