NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) assigns final ratings to five classes of notes issued by OneMain Direct Auto Receivables Trust 2017-1 (“ODART 2017-1”), an auto loan ABS transaction.
The collateral in the ODART 2017-1 deal includes approximately $299.93 million of loans at closing. The ratings reflect the initial credit enhancement levels ranging from 31.00% for the Class A notes to 1.00% for the Class E notes, which build to 39.00% and 9.00% for the Class A and Class E notes, respectively, over time. Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account and excess spread. Class D and Class E notes are anticipated to be retained by the depositor, OneMain Direct Auto Funding, LLC.
This transaction represents the second auto loan term securitization for Springleaf Finance Corporation (“Springleaf” or the “Company”). 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, Springleaf Holdings, Inc. changed its name to OneMain Holdings, Inc. (“OMH”).
KBRA applied its U.S. Auto Loan ABS methodology as part of its analysis of the transaction’s underlying collateral pool, the proposed capital structure and OneMain’s historical static pool data. KBRA also conducted an operational assessment on the originator and servicer, as well as a review of the transaction’s legal structure and transaction documents.
Final Ratings Assigned: OneMain Direct Auto Receivables Trust 2017-1
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* Class E Notes are initially retained by the depositor.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).