Fitch to rate Springleaf notes B/RR4

Fitch Ratings said it expects to assign a rating of B(EXP)/RR4 to Springleaf Finance Corp.’s $500 million senior unsecured notes due March 2026.

Springleaf is a wholly owned subsidiary of OneMain Holdings, Inc., which has a long-term issuer default rating of B with a positive outlook.

The expected unsecured debt rating is equalized with Springleaf's long-term issuer default rating as well as its existing unsecured debt, as the new notes will rank equally in the capital structure.

The proposed note issuance does not affect the long-term issuer default rating, as Fitch said it does not expect overall liquidity and leverage to change materially. Based on the priority of repayment, the expected unsecured rating of B/RR4 implies an average recovery for unsecured debtholders under a stressed scenario, the agency explained.

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