DBRS Upgrades Rating of OneMain Financial Funding VII, LLC

DBRS, Inc. (DBRS) upgraded the rating of the notes issued by OneMain Financial Funding VII, LLC (OneMain VII or the Borrower) to AA (high) (sf) from A (sf).

The rating is based on DBRS’s review of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the rating addresses the payment of timely interest on a monthly basis and principal by the legal final maturity date.
-- OneMain VII’s capabilities with regard to originations, underwriting and servicing.
-- The credit quality of the collateral and performance of OneMain VII’s consumer loan portfolio. DBRS has used a hybrid approach in analyzing the OneMain VII portfolio that incorporates elements of static pool analysis, employed for assets such as consumer loans, and revolving asset analysis, employed for such assets as credit card master trusts.
-- The legal structure and presence of legal opinions which address the true sale of the assets to the Borrower, the non-consolidation of the special-purpose vehicle with OneMain VII and that the trust has a valid first-priority security interest in the assets and is consistent with DBRS’s “Legal Criteria for U.S. Structured Finance” methodology.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is Rating U.S. Structured Finance Transactions, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS 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.