OneMain Financial issuance trust 2026-1 wins KBRA ratings for $1.1 billion ABS sale

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OneMain 2026-1 ABS wins KBRA

Highlights

OneMain Financial Issuance Trust 2026-1 received KBRA ratings for a $1.1 billion consumer loan ABS sale across four note classes.
Credit enhancement for OMFIT 2026-1 ranges from 33.60% for Class A to 11.10% for Class D, supported by overcollateralization, subordination, reserve accounts, and excess spread.
This marks the 32nd consumer loan securitization since 2013 by OneMain, which was acquired for $4.49 billion in 2015 and trades as OMF on NYSE.

Transaction structure and ratings scope

As reported by Kroll Bond Rating Agency, KBRA assigns ratings to four classes of notes to be issued by OneMain Financial Issuance Trust 2026-1, or OMFIT 2026-1. The securitization will issue four classes of notes totaling $1.1 billion in a consumer loan asset-backed securities transaction.

The assigned ratings reflect initial credit enhancement levels ranging from 33.60% for the Class A notes to 11.10% for the Class D notes. That support comes from overcollateralization, subordination of junior note classes, except for the Class D notes, a cash reserve account and excess spread.

OMFIT 2026-1 also 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 stressed cash flow assumptions in reviewing the underlying collateral pool and the transaction's capital structure.

Issuer background and market significance

OneMain Finance Corporation is a wholly owned subsidiary of OneMain Holdings, Inc., a consumer finance company that offers loan products through a nationwide branch network and its online platform. The company says this is the 32nd consumer loan transaction issued by OneMain or its subsidiaries since 2013, alongside 25 auto loan term securitizations over that period.

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

In its review, KBRA says it also considers its operational review of OneMain, periodic update calls with the company, and operative agreements and legal opinions reviewed before closing. The transaction adds to issuance in the consumer finance ABS market, where structural protections and collateral performance remain central to investor demand.

Our earlier article on KBRA’s surveillance review of Peapack-Gladstone Financial Corporation explained that the agency affirmed the group’s existing debt and deposit ratings for both the parent company and its main banking subsidiary, Peapack Private Bank & Trust. We also noted that the Stable Outlook signaled no change in KBRA’s longer-term credit view, giving investors an updated benchmark for assessing credit risk and funding conditions in the regional banking sector.

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