DBRS Finalizes Provisional Ratings on OneMain Direct Auto Receivables Trust 2017-2

DBRS, Inc. (DBRS) finalized its provisional ratings on the following classes of notes issued by OneMain Direct Auto Receivables Trust 2017-2 (ODART 2017-2 or the Issuer):

-- $374,390,000 Class A at AAA (sf)
-- $87,360,000 Class B at AAA (sf)
-- $62,400,000 Class C at AA (high) (sf)
-- $43,680,000 Class D at A (high) (sf)
-- $37,440,000 Class E at BBB (high) (sf)

The ratings are based on DBRS’s review of the following analytical considerations:

-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- ODART 2017-2 provides for Class A, B, C, D and E coverage multiples at the DBRS range of multiples set forth in the criteria for this asset class. DBRS believes that this is warranted given the magnitude of expected loss and structural features of the transaction.
-- The transaction parties’ capabilities with regard to originations, underwriting and servicing.
-- The quality and consistency of provided historical static pool data for OneMain Financial (OneMain) originations and performance of the OneMain Direct Auto loan portfolio.
-- The legal structure and presence of legal opinions that address the true sale of the assets to the Issuer, the non-consolidation of the special-purpose vehicle with OneMain, that the trust has a valid first-priority security interest in the assets and the consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

The finalized rating on the Class A note reflects the 41.00% of initial hard credit enhancement provided by the subordinated notes in the pool, the Reserve Account (1.00%) and overcollateralization (3.00%). The ratings on the Class B, C, D and E notes reflect 27.00%, 17.00%, 10.00% and 4.00% of initial hard credit enhancement, respectively. Additional credit support may be provided from excess spread available in the structure.

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

The principal methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrs.com.