KBRA Assigns Preliminary Ratings to SpringCastle Funding Asset-Backed Notes 2019-A

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three
class of SpringCastle Funding Asset-Backed Notes 2019-A (“SCFT 2019-A”),
a consumer loan asset-backed securities transaction.

This transaction is a refinancing of the SpringCastle Funding
Asset-Backed Notes 2016-A transaction (“SCFT 2016-A”). The collateral in
the SCFT 2019-A includes approximately $938.7 million of loans as of the
April 30, 2019 initial cut-off date. The preliminary ratings reflect the
initial credit enhancement levels of 10.00% for the Class A notes, 2.50%
for the Class B notes, and 0.50% for the Class C notes, and target
credit enhancement levels of 10.80%, 3.30%, 1.30% for the Class A, Class
B, and Class C notes, respectively. Credit enhancement is comprised of
overcollateralization, subordination of junior note classes, cash
reserves, and excess spread.

SCFT 2019-A represents the first consumer loan term ABS securitization
in 2019 issued by the SpringCastle Joint Venture. The transaction is
backed by loans acquired by SpringCastle JV comprised of Springleaf
Acquisition Corporation (“SAC”), affiliates of New Residential
Investment Corp. (“New Residential”), and an affiliate of Blackstone
Tactical Opportunities Advisors LLC. (“Blackstone”) from HSBC Finance
Corporation (“HSBC”) in April 2013.

OneMain Holdings, Inc. (“OMH” and its subsidiaries, “OneMain”),
previously known as Springleaf Holdings, Inc. (“SHI”), sold its 47%
interest in SpringCastle on March 31, 2016 to affiliates of New
Residential and funds managed by Blackstone. OMH continues to service
the SpringCastle portfolio via its subsidiary Springleaf Finance
Corporation (“SFC”) through its London, KY servicing center. SFC is a
wholly owned subsidiary of Springleaf Finance, Inc. (“SFI” and together
with SFC and its subsidiaries, “Springleaf” or the “Company”), which in
turn is a wholly owned subsidiary of OMH. On November 15, 2015, SHI
acquired OneMain Financial Holdings, LLC 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 OMH.

KBRA analyzed the transaction using the Global Consumer Loan ABS Rating
Methodology. KBRA’s consumer loan methodology incorporates an analysis
of: (1) the underlying collateral pool, (2) the originator’s historical
static pool data, segmented by characteristics including credit quality
and product type, (3) the proposed capital structure for the
transaction, (4) KBRA’s operational assessment of the originator and
servicer and (5) the legal structure, transaction documents, and legal


Preliminary Ratings Assigned: SpringCastle Funding Asset-Backed
Notes 2019-A

Class   Preliminary Rating   Initial Class Principal
A   AAA (sf)   $849,548,000
B   AAA (sf)   $70,405,000
C   AA (sf)   $18,775,000

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)


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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus. KBRA is also recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.


Alla Mikhalevsky,
CFA, Director
(646) 731-3356
[email protected]

Melvin Zhou, CFA, Director
(646) 731-2412
[email protected]

Andrew Silverhardt, Senior Analyst
(646) 731-2492
[email protected]

Rosemary Kelley, Senior Managing Director
(646) 731-2337
[email protected]

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