S&P lowers OneMain, debt to B

Standard & Poor's said it lowered its issuer credit rating and issue ratings on OneMain Financial Holdings LLC to B from B+ and affirmed its B issuer credit rating and issue ratings on Springleaf Holdings Inc.

The ratings were on both entities removed from CreditWatch, where they were placed on March 3, 2015, with negative implications.

The outlook on both entities is negative.

On Nov. 13, Springleaf announced that it will agree to a consent order filed by the U.S. Department of Justice (DOJ) whereby Springleaf can acquire OneMain Financial Holdings LLC if Springleaf sells 127 of its branches.

The agency expects the acquisition to close within a few days. The transaction had been delayed because the DOJ was evaluating whether the acquisition of the largest branch-based consumer installment lender (OneMain) by the second largest (Springleaf) would create an anticompetitive environment for consumers.

To mitigate the DOJ's concerns, Springleaf announced that it will sell 127 branches and approximately $600 million of personal loans held for sale to Lendmark.

"We are lowering our issuer credit rating on OneMain to what we consider would be the group credit profile of the consolidated group," S&P credit analyst Stephen Lynch said in a news release.

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