Research Update: Synchrony Financial Outlook Revised To Stable From Negative After Key Partnerships Extended; 'BBB-' Rating Affirmed

On Jan. 23, 2019, Synchrony Financial announced that it extended its partnership agreement with Sam's Club. The company has also renewed numerous other partnerships over the past six months, demonstrating its ability to retain key clients. Synchrony also announced an agreement to sell its Walmart receivables portfolio, and we believe it will maintain peer-leading capital metrics despite its intention to pay out a majority of the sale proceeds to shareholders. We are revising our outlook on Synchrony Financial and its bank subsidiary, Synchrony Bank, to stable from negative and affirming our ratings at 'BBB-' and 'BBB', respectively. The stable outlook on Synchrony reflects our expectation that the company will maintain an S&P Global Ratings risk-adjusted capital ratio of 7% or

...+ On Jan. 23, 2019, Synchrony Financial announced that it extended its partnership agreement with Sam's Club. The company has also renewed numerous other partnerships over the past six months, demonstrating its ability to retain key clients. + Synchrony also announced an agreement to sell its Walmart receivables portfolio, and we believe it will maintain peer-leading capital metrics despite its intention to pay out a majority of the sale proceeds to shareholders. + We are revising our outlook on Synchrony Financial and its bank subsidiary, Synchrony Bank, to stable from negative and affirming our ratings at '###-' and '###', respectively. + The stable outlook on Synchrony reflects our expectation that the company will maintain an S&P Global Ratings risk-adjusted capital ratio of 7% or higher and robust regulatory capitalization over our two-year forecast horizon....

Research Update