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 transactions underlying collateral pool, the proposed capital structure and OneMains historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transactions legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.
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Preliminary Ratings Assigned: OneMain Direct Auto Receivables Trust 2019-1
Expected Initial Principal Balance
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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.
Alla Mikhalevsky, CFA, Director
Andrew Silverhardt, Senior Analyst
Melvin Zhou, CFA, Director
Rosemary Kelley, Senior Managing Director