Moody's upgrades OneMain

Moody's Investors Service said it upgraded OneMain Holdings, Inc.'s long-term corporate family rating to Ba2 from Ba3. The agency also raised OneMain Finance Corp.'s issuer and senior unsecured ratings to Ba2 from Ba3 and revised the outlook to stable from under review.

“Moody's said the one-notch upgrade to OneMain's ratings reflects the company's continued solid financial performance even during the weakened operating environment amid high unemployment and low loan demand. OneMain's profitability remained solid in 2020, with its Moody's-calculated net income % average managed assets of 3.35%, and its asset quality performance was strong with net charge-offs of 5.45% of gross loans, as its customers benefited from strong government stimulus and other consumer support measures,” the agency said in a press release.

The stable outlook mirrors the view that OneMain will maintain its good financial performance, risk and leverage appetite and strong liquidity position over the next 12-18 months, Moody’s said.

The upgrade and outlook revision conclude the review for upgrade announced on May 3.

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