Fitch Affirms Synchrony Sales Finance Master Trust (Formerly Known as GE Sales Finance Master Trust)

NEW YORK--()--Fitch Ratings has affirmed the long-term ratings assigned to Synchrony Sales Finance Master Trust (formerly known as GE Sales Finance Master Trust). The Rating Outlook is Stable. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations are based on continued positive trust performance and robust breakeven multiples. Fitch has maintained the Stable Outlook on the notes due to steady trust performance.

Over the past 12 months, gross yield has been performing within Fitch's steady state expectations. As of the February 2015 reporting period, the 12-month average gross yield was 19.25% compared to the 12-month average of 18.27% as of the February 2014 reporting period.

Gross charge-offs have remained at relatively steady levels throughout the year. Currently, the 12-month average is 4.21%, slightly higher than last year's 12-month average of 3.96%. 60+ day delinquency levels have also increased slightly. Currently, the 12-month average 60+ day delinquency rate is 2.06%.

Monthly payment rate (MPR), a measure of how quickly consumers are paying off their debt, has remained relatively stable over the past year. The current 12-month average was 10.67%, compared to 10.70% a year ago.

Fitch runs cash flow breakeven analysis by applying stress scenarios to three-, six-, and 12-month average performance to test that under the stressed conditions, the transaction can withstand a level of losses commensurate with the risk associated to a rating level with the available credit enhancement. The variables that Fitch stresses are the gross yield, MPR, gross charge-off, and purchase rates. The break-even loss level output for the notes provides an indication of the remoteness of the class of notes to stressed performance deterioration. For further information, please review Fitch's U.S. Credit Card ABS Issuance updates published on a monthly basis.

The affirmations are based on the performance of the trusts in line with expectations. The Stable Outlook on the senior notes indicates that Fitch expects the ratings will remain stable for the next one to two years.

Fitch's analysis included a comparison of observed performance trends over the past few months to Fitch's base case expectations for each outstanding rating category. As part of its ongoing surveillance efforts, Fitch will continue to monitor the performance of this trust.

RATING SENSITIVITIES

Fitch models three different scenarios when evaluating the rating sensitivity compared to expected performance for credit card asset-backed securities transactions: 1) increased defaults; 2) a reduction in purchase rate, and 3) a combination stress of higher defaults and lower MPR.

In the harshest stress scenario of a combined 75% increase to defaults and a 35% reduction of MPR could lead to the most drastic downgrades to all classes. Under a moderate stress of a 50% increase in defaults and 25% reduction in MPR, rating migration could be less impacted. However, increasing defaults by 75% and reducing purchase rate by 100% alone in comparison will have the least impact on rating migration.

For a discussion of the representations, warranties, and enforcement mechanisms available to investors in this transaction, please see the related appendix.

For more information about Fitch's comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at 'webmaster@fitchratings.com'.

Fitch has affirmed the following classes as indicated:

Synchrony Sales Finance Master Trust Series 2012-A:

--Class A at 'AAsf'; Outlook Stable.

Synchrony Sales Finance Master Trust Series 2014-B:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'AAsf'; Outlook Stable.

Synchrony Sales Finance Master Trust Series 2014-D:

--Class A at 'AAAsf'; Outlook Stable;

--Class B at 'AAsf'; Outlook Stable.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Credit Card ABS Rating Criteria' (May 2014);

--'Global Structured Finance Rating Criteria' (August 2014).

Applicable Criteria and Related Research:

Global Credit Card ABS Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748920

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=981135

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Contacts

Fitch Ratings
Primary Analyst
Herman C. Poon
Director
+1-212-908-0847
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Jenny Ovalle
Associate Director
+1-212-908-0849
or
Committee Chairperson
Steven Stubbs
Senior Director
+1-212-908-0676
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Herman C. Poon
Director
+1-212-908-0847
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Jenny Ovalle
Associate Director
+1-212-908-0849
or
Committee Chairperson
Steven Stubbs
Senior Director
+1-212-908-0676
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com