Synchrony Card Issuance Trust SynchronySeries Class A(2019-1) Notes Assigned Rating


  • Synchrony Card Issuance Trust's issuance is an ABS transaction backed by a pool of private-label and co-branded revolving credit card receivables accounts originated under Synchrony Bank's retail card platform.
  • We assigned our rating to the class A notes.
  • The rating reflects our view of the transaction's credit support, underlying payment structure, and cash flow mechanics, among other factors.
TORONTO (S&P Global Ratings) March 15, 2019--S&P Global Ratings today assigned 
its rating to Synchrony Card Issuance Trust's (SYNIT's) SynchronySeries class 
A(2019-1) notes (see list).

The note issuance is an asset-backed securities transaction backed by a pool 
of private-label and co-branded revolving credit card receivables accounts 
originated under Synchrony Bank's retail card platform.

The rating reflects:
  • Our view that the credit support for the class A notes is sufficient to withstand the simultaneous stresses we apply for each rating category to our 8.25% base-case loss rate assumption, 15.75% base-case payment rate assumption, and 21.00% base-case yield assumption, as well as our stressed purchase rate and excess spread assumptions. All of these stress assumptions are based on our current criteria and assumptions (see "U.S. Credit Card Securitizations: Methodology And Assumptions," published Aug. 24, 2017).
  • Our expectation that under a moderate ('BBB') stress scenario, all else being equal, our 'AAA (sf)' rating on the class A notes, will remain within one rating category in the next 12 months, based on our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010).
  • Our view that the 5.00% minimum free equity percentage requirement is sufficient in our stress scenarios to absorb dilution or noncash reductions in the receivables.
  • Our view of the credit risk inherent in the collateral pool based on our economic forecast, the trust portfolio's historical performance, and collateral characteristics of the eligible credit card accounts.
  • Our view of Synchrony Bank's (BBB/Stable/--) servicing, account origination, underwriting, account management, collections, and general operational practices and experience in private-label and co-branded cards.
  • Our expectation for timely interest and ultimate principal payments by the legal maturity dates based on our stressed cash flow modeling scenarios using assumptions commensurate with the rating.
  • The SynchronySeries (2019-1) transaction's underlying payment structure, cash flow mechanics, and legal structure.
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