OneMain Financial issuance trust gets preliminary KBRA ratings for $500 million ABS deal

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OneMain Financial $500M ABS ratings

Highlights

KBRA assigns preliminary ratings to four classes of notes totaling $500 million for the OneMain Financial Issuance Trust 2026-1 consumer loan ABS transaction, with credit enhancement levels from 33.60% to 11.10%.
The ABS deal features a three-year revolving period allowing collections to purchase new collateral, subject to eligibility and reinvestment criteria, enhancing structural flexibility.
This transaction marks OneMain Finance Corporation's 32nd consumer loan ABS deal since 2013 and first issuance in 2026, continuing its securitization activity under NYSE-listed parent OneMain Holdings (OMF).

Preliminary ratings and deal structure

As reported by Kroll Bond Rating Agency, KBRA assigns preliminary ratings to four classes of notes to be issued by OneMain Financial Issuance Trust 2026-1, a consumer loan ABS transaction. The notes total $500.0 million, with initial credit enhancement levels ranging from 33.60% for the Class A notes to 11.10% for the Class D notes.

Credit enhancement consists of overcollateralization, subordination of junior note classes, except for the Class D notes, a cash reserve account and excess spread. The transaction includes a three-year revolving period, during which collections may be used to purchase new collateral if it meets eligibility and reinvestment criteria.

KBRA says it applies its Consumer Loan ABS Global Rating Methodology and its Global Structured Finance Counterparty Methodology in reviewing the underlying collateral pool and capital structure under stressed cash flow assumptions. The agency also considers its operational review of OneMain and periodic update calls with the company, while operative agreements and legal opinions remain subject to review before closing.

OneMain's securitization track record

OneMain Finance Corporation, a wholly owned subsidiary of OneMain Holdings, is issuing its first consumer loan ABS securitization of 2026 through the trust. The deal is the 32nd consumer loan transaction issued by OneMain or its subsidiaries since 2013.

Since 2013, OneMain and its subsidiaries also issue 25 auto loan term securitizations. OneMain Holdings operates as a consumer finance company offering loan products through a nationwide branch network and its online platform.

OneMain Holdings completed its acquisition of OneMain Financial Holdings, LLC from CitiFinancial Credit Company on November 15, 2015 for $4.49 billion in cash. The company is listed on the NYSE under the ticker OMF.

Our earlier coverage of KBRA’s preliminary ratings for the UK Logistics 2026-2 DAC CMBS deal outlined a five-class note structure backed by a £648.8 million floating-rate mortgage loan secured by a 184-asset UK industrial and logistics portfolio. We highlighted key credit considerations from the rating analysis, including occupancy levels, the geographic mix of properties, and a stressed valuation that implied a KBRA loan-to-value ratio above 100%—signaling elevated leverage risk for investors.

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