NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Springleaf Funding Trust 2016-A (“SLFT 2016-A”), a consumer loan asset-backed securities transaction.
The collateral in the SLFT 2016-A deal includes approximately $446.0 million of loans, as of the October 31, 2016 statistical cutoff 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 criteria. The preliminary ratings reflect the initial credit enhancement levels ranging from 25.40% for the Class A notes to 5.80% for the Class D notes.
Springleaf Finance Corporation (“Springleaf”) is an experienced originator and servicer of consumer loans and has been in the personal lending business, through its predecessors, for nearly 100 years. On November 15, 2015, Springleaf Holdings, Inc. (“SHI”) acquired OneMain Financial Holdings, LLC (“OneMain”) from CitiFinancial Credit Company, a wholly-owned subsidiary of Citigroup for $4.49 billion in cash. As a result, on October 1, 2016 Springleaf Holdings, Inc. changed its name to OneMain Holdings, Inc. (“OMH”).
KBRA applied its General Rating Methodology for Asset-Backed Securities as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and Springleaf’s historical annualized gross and net loss data. KBRA also conducted an operational assessment of Springleaf, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.
Preliminary Ratings Assigned: Springleaf Funding Trust 2016-A
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General Rating Methodology for Asset-Backed Securities
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