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KBRA Assigns Preliminary Ratings to OneMain Financial Issuance Trust 2025-1

1. KBRA assigns preliminary ratings to OMFIT 2025-1 notes totaling $600 million. 2. Credit enhancement levels range from 35.25% to 11.45% across note classes. 3. This is OneMain's first consumer loan ABS securitization for 2025. 4. OneMain has issued 31 consumer loan transactions since 2013, expanding its portfolio. 5. A three-year revolving period allows for reinvestment with eligible collections.

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FAQ

Why Bullish?

The positive credit ratings indicate strong confidence in OMF's financial stability, similar to successful past securitizations that supported upward price trends.

How important is it?

The securitization represents significant financial activity that can improve liquidity, enhancing investor confidence.

Why Short Term?

Immediate market perception may drive interest given the recent issuance, akin to past market responses to ABS announcements.

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OMHCITIBCS
- NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to four classes of notes issued by OneMain Financial Issuance Trust 2025-1 (“OMFIT 2025-1”), a consumer loan ABS transaction. OMFIT 2025-1 will issue four classes of notes totaling $600.0 million. The preliminary ratings reflect initial credit enhancement levels ranging from 35.25% for the Class A notes to 11.45% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account and excess spread. This transaction represents the first consumer loan ABS securitization issued by OneMain Finance Corporation (“OneMain” or “OMFC”, or the “Company”), a wholly-owned subsidiary of OneMain Holdings, Inc. (“OMH”), in 2025 and the 31st consumer loan transaction issued by OneMain or its subsidiaries since 2013. Since that time, OneMain and its subsidiaries have also issued 39 auto loan term securitizations. OMFIT 2025-1 includes a three year revolving period during which collections may be used to purchase new collateral so long as it meets the eligibility criteria and reinvestment criteria. 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 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”. KBRA applied its Consumer 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 and the capital structure using stressed cash flow assumptions. KBRA considered its operational review of OneMain, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing. To access ratings and relevant documents, click here. Click here to view the report. Methodologies ABS: Consumer Loan ABS Global Rating Methodology Structured Finance: 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), one of the major credit rating agencies (CRA), is a full-service CRA 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. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009903 More News From Kroll Bond Rating Agency, LLC

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