Moody’s rates OneMain Financial CFR, notes B2

Moody's Investors Service said it assigned a B2 corporate family rating to OneMain Financial Holdings, Inc. and a B2 rating to the proposed $1 billion senior unsecured notes.

The outlook is stable.

Moody’s said OneMain's B2 issuer rating reflects its strong U.S. branch-based consumer lending franchise, profitable operations, adequate capital position, and capable management. The firm's ratings are constrained by the operating and financial risks associated with its transition toward independence from the ownership and support of its indirect parent Citigroup Inc. Citi is seeking to reduce its ownership in OneMain, either though an IPO (S-1 filed in October 2014) or a sale of the company. Credit concerns center on OneMain's evolving liquidity profile, plans for growth and risk expansion, as well as regulatory risk.

The rating of the notes is based upon their terms, senior priority in OneMain's capital structure and guarantees from restricted subsidiaries, the agency said.

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