DBRS Morningstar Takes Rating Actions on Eight OneMain Financial Issuance Trust Transactions

DBRS, Inc. (DBRS Morningstar) confirmed or upgraded its ratings on the following classes of securities issued by eight OneMain Financial Issuance Trust transactions:

-- Series 2015-3, Class A, upgraded to AAA (sf) from AA (sf)
-- Series 2015-3, Class B, upgraded to AA (sf) from A (sf)
-- Series 2015-3, Class C, upgraded to A (sf) from BBB (sf)
-- Series 2015-3, Class D, upgraded to BBB (sf) from BB (sf)
-- Series 2016-3 Notes, Class A, confirmed at AA (sf)
-- Series 2016-3 Notes, Class B, confirmed at A (sf)
-- Series 2016-3 Notes, Class C, confirmed at BBB (sf)
-- Series 2016-3 Notes, Class D, confirmed at BB (sf)
-- Series 2017-1 Notes, Class A-1, upgraded to AAA (sf) from AA (sf)
-- Series 2017-1 Notes, Class A-2, upgraded to AAA (sf) from AA (sf)
-- Series 2017-1 Notes, Class B, upgraded to AA (sf) from A (sf)
-- Series 2017-1 Notes, Class C, upgraded to A (sf) from BBB (sf)
-- Series 2017-1 Notes, Class D, upgraded to BBB (sf) from BB (sf)
-- Series 2018-1, Class A, confirmed at AAA (sf)
-- Series 2018-1, Class B, confirmed at AA (sf)
-- Series 2018-1, Class C, confirmed at A (sf)
-- Series 2018-1, Class D, confirmed at BBB (sf)
-- Series 2018-1, Class E, confirmed at BB (sf)
-- Series 2018-2, Class A, confirmed at AAA (sf)
-- Series 2018-2, Class B, confirmed at AA (sf)
-- Series 2018-2, Class C, confirmed at A (sf)
-- Series 2018-2, Class D, confirmed at BBB (sf)
-- Series 2018-2, Class E, confirmed at BB (sf)
-- Series 2019-1, Class A, confirmed at AAA (sf)
-- Series 2019-1, Class B, confirmed at AA (sf)
-- Series 2019-1, Class C, confirmed at A (sf)
-- Series 2019-1, Class D, confirmed at BBB (sf)
-- Series 2019-1, Class E, confirmed at BB (sf)
-- Series 2019-2, Class A, confirmed at AAA (sf)
-- Series 2019-2, Class B, confirmed at AAA (sf)
-- Series 2019-2, Class C, confirmed at AA (sf)
-- Series 2019-2, Class D, confirmed at BBB (high) (sf)
-- Series 2020-1, Class A, confirmed at AAA (sf)
-- Series 2020-1, Class B, confirmed at AA (sf)
-- Series 2020-1, Class C, confirmed at A (sf)

The rating actions are based on the following analytical considerations:
-- The transaction assumptions consider DBRS Morningstar’s set of macroeconomic scenarios for select economies related to the Coronavirus Disease (COVID-19), available in its commentary “Global Macroeconomic Scenarios: September Update,” published on September 10, 2020. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which have been regularly updated. The scenarios were last updated on September 10, 2020, and are reflected in DBRS Morningstar’s rating analysis.

-- The assumptions consider the moderate macroeconomic scenario outlined in the commentary, with the moderate scenario serving as the primary anchor for current ratings. The moderate scenario remains predicated on a more rapid return of confidence and a steady recovery heading into 2021. Observed performance during the 2008–09 financial crisis and the possible impact from stimulus were also considered in the assumptions.

-- The level of hard credit enhancement in the form of overcollateralization, subordination, and amounts held in the reserve funds available in the transactions. Hard credit enhancement and estimated excess spread are sufficient to support the DBRS Morningstar current rating levels listed above.

-- The collateral performance to date and DBRS Morningstar's assessment of future performance, including upward revisions to the expected charge-off assumptions consistent with the expected unemployment levels in the moderate scenario.

-- The transaction parties’ capabilities with regard to origination, underwriting, and servicing.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

DBRS Morningstar notes that this press release was amended on December 10, 2020, to correct the principal methodology.

Notes:
The principal methodology is the DBRS Morningstar Master U.S. ABS Surveillance Methodology (May 27, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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