KBRA Assigns Preliminary Ratings to OneMain Direct Auto Receivables Trust 2021-1

NEW YORK–(BUSINESS WIRE)–#KBRA–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by OneMain Direct Auto Receivables Trust 2021-1 (“ODART 2021-1”), an auto loan asset-backed securities transaction.

The collateral in the ODART 2021-1 transaction includes approximately $631.6 million of loans as of the August 31, 2021 Statistical Cut-Off Date. The transaction includes a two-year revolving period during which additional collateral may be funded in the transaction so long as it complies with certain eligibility and reinvestment criteria. The preliminary ratings reflect the initial credit enhancement levels ranging from 27.00% for the Class A notes to 5.50% for the Class D notes.

OneMain Holdings, Inc. (“OMH”) is a consumer finance company which offers loan products through a nationwide network of branches and through its online platform. OMH completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) on November 15, 2015 from CitiFinancial Credit Company for $4.49 billion in cash. OMH is now listed on the NYSE under the ticker symbol “OMF”. OneMain Finance Corporation (“OneMain” or “OMFC”, or the “Company”) is the Sponsor, Servicer, Performance Support Provider & Administrator in ODART 2021-1.

KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and OMFC’s historical static pool data. KBRA considered its operational review of OneMain and its branches, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• Auto Loan ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. 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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Contacts

Analytical Contacts

Michael Pettigrew, Senior Analyst (Lead Analyst)

+1 (646) 731-1208

michael.pettigrew@kbra.com

Hollie Reddington, Director

+1 (646) 731-3375

hollie.reddington@kbra.com

Eric Neglia, Senior Managing Director

+1 (646) 731-2456

eric.neglia@kbra.com

Rosemary Kelley, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2337

rosemary.kelley@kbra.com

Business Development Contact

Ted Burbage, Managing Director

+1 (646) 731-3325

ted.burbage@kbra.com