DBRS, Inc. (DBRS) assigned new ratings to the following class of notes issued by New River Funding, LLC:
-- Class A rated AAA (sf)
-- Class B rated AAA (sf)
-- Class C rated A (sf)
The transaction is a warehouse for the financing of consumer loan receivables.
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 according to the terms under which the warehouse is governed. 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 regards 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 OneMain’s 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.
DBRS notes that the above press release was amended on April 15, 2019, to add a statement concerning the methodologies DBRS used in its analysis for this transaction. The amendment was minor and would not impact the understanding of the reader.
The principal methodologies are Rating U.S. Structured Finance Transactions and Rating U.S. Credit Card Asset-Backed Securities, which can be found on dbrs.com 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.
This rating is endorsed by DBRS Ratings Limited for use in the European Union. The following additional regulatory disclosures apply to endorsed ratings:
Each of the principal asset class methodologies employed in the analysis addressed one or more particular risks or aspects of the rating and were factored into the rating decision. Appendix I of Rating U.S. Structured Finance Transactions addresses DBRS’s approach to evaluating fully amortizing consumer loans, and Rating U.S. Credit Card Asset Backed Securities addresses DBRS’s approach to evaluating revolving loans. The analysis of payment and default rates was specifically affected by the renewals offered to qualified obligors; therefore, DBRS relied on two methodologies.
This rating concerns a newly issued financial instrument. This is the first DBRS rating on this financial instrument.
For further information on DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.
Lead Analyst: Chris O’Connell, Senior Vice President, U.S. & European Structured Finance
Rating Committee Chair: Tim O’Neil, Managing Director, Head of Canadian Structured Finance
Initial Rating Date: March 15, 2019
For more information on this credit or on this industry, visit www.dbrs.com or contact us at email@example.com.
140 Broadway, 43rd Floor
New York, NY 10005 USA