NEW YORK--(BUSINESS WIRE)--(This is a correction of a press release published on Oct. 15, 2015. It includes the publication of a RW&E appendix.)
Fitch Ratings, New York, April 8, 2016: Fitch Ratings assigns the following ratings to Synchrony Sales Finance Master Trust's asset-backed notes, series 2015-B:
--$631,578,947 class A 'AAAsf'; Outlook Stable;
--$118,421,053 class B 'A+sf'; Outlook Stable.
KEY RATING DRIVERS
Fitch's ratings are based on the underlying receivables pool, available credit enhancement, Synchrony Bank's underwriting and servicing capabilities, and the transaction's legal and cash flow structures, which employ early redemption triggers.
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 monthly payment rate (MPR).
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 affected. However, in comparison, increasing defaults by 75% and reducing purchase rate by 100% alone will have the least impact on rating migration.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at www.fitchratings.com.
Synchrony Sales Finance Master Trust, Series 2015-B -- Appendix
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds (pub. 19 Dec 2014)
Global Credit Card ABS Rating Criteria (pub. 26 Jun 2015)
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
Dodd-Frank Rating Information Disclosure Form