...NEW YORK (S&P Global Ratings) Nov. 8, 2018--S&P Global Ratings said today that a lawsuit filed by Walmart Inc. against Synchrony Financial raises additional uncertainties surrounding the dissolution of the Synchrony/Walmart partnership (see "Synchrony Financial Outlook Revised To Negative On Announcement Walmart Partnership Will End; '###-' Rating Affirmed," published on July 30, 2018). This announcement has no immediate impact on our ratings on Synchrony or our negative outlook (###-/Negative/--). On Nov. 1, Walmart filed suit alleging a breach of its partnership agreement with Synchrony. Walmart is seeking damages of at least $800 million. Synchrony has stated that it believes the suit is without merit, based on its long-standing contractual arrangement with Walmart. While the potential charge could be substantial, we believe that the company could absorb it without leading us to lower our ratings, as long as the charge does not result in capital ratios that are lower than our long-term...
