Bulletin: Synchrony Financial Credit Card ABS Ratings Not Affected By Nonrenewal Of Gap Inc. Partnership

NEW YORK (S&P Global Ratings) May 14, 2021--S&P Global Ratings today stated that it does not expect its ratings on the credit card asset-backed securities (CCABS) issued from Synchrony Credit Card Master Note Trust (Synchrony CCMNT) and Synchrony Card Issuance Trust (Synchrony CIT) to be adversely affected by the nonrenewal of Synchrony Financial's financing partnership with Gap Inc. On April 13, 2021, Synchrony Financial announced that Synchrony Bank's retail card program agreement with Gap Inc. will not be renewed when it expires in April 2022. As of March 31, 2021, the Gap Inc.-related (Gap, Old Navy, and Banana Republic) receivables represent approximately 16% and 20% of the receivables in Synchrony CCMNT and Synchrony CIT, respectively. The nonrenewal of the agreement

...NEW YORK (S&P Global Ratings) May 14, 2021--S&P Global Ratings today stated that it does not expect its ratings on the credit card asset-backed securities (CCABS) issued from Synchrony Credit Card Master Note Trust (Synchrony CCMNT) and Synchrony Card Issuance Trust (Synchrony CIT) to be adversely affected by the nonrenewal of Synchrony Financial's financing partnership with Gap Inc. On April 13, 2021, Synchrony Financial announced that Synchrony Bank's retail card program agreement with Gap Inc. will not be renewed when it expires in April 2022. As of March 31, 2021, the Gap Inc.-related (Gap, Old Navy, and Banana Republic) receivables represent approximately 16% and 20% of the receivables in Synchrony CCMNT and Synchrony CIT, respectively. The nonrenewal of the agreement may result in a removal of the Gap Inc.-related receivables in the trusts. We established our base-case assumptions and rating category stresses of key performance variables for the trusts (see tables 1 and 2) and considered...

Bulletin