Moody's upgrades OneMain, Springleaf

Moody's Investors Service said it upgraded OneMain Holdings, Inc.'s corporate family rating to B1 from B2, Springleaf Finance Corp.'s senior unsecured debt rating to B1 from B2 and OneMain Financial Holdings, LLC's senior unsecured debt rating to Ba3 from B1.

The outlook is stable.

The upgrade of OneMain Holdings' corporate family rating reflects the company's strengthened GAAP earnings, as well as its improved capitalization, Moody's said, and strong liquidity and funding profile.

The one-notch differential between OneMain Financial's senior unsecured debt rating of Ba3 and Springleaf Finance's senior unsecured debt rating of B1 reflects structural protections in OneMain Financial's bond indenture through covenants that impose restrictions on leverage and limit shareholder distributions that could otherwise weaken its capital buffer, Moody's explained.

OneMain continued to strengthen its funding and liquidity profile since last year by improving the laddering of its debt maturities, the agency said, as well as increasing the availability under its credit facilities and extending their maturities.

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