Synchrony Financial's Preferred Issuance Rated 'BB-'

NEW YORK (S&P Global Ratings) Nov. 6, 2019--S&P Global Ratings today assigned its 'BB-' rating on Synchrony Financial's issuance of noncumulative perpetual preferred stock. The rating on the series A preferred stock is linked to our long-term issuer credit rating (ICR) on Synchrony. The preferred stock rating is three notches lower than the holding company ICR because of the issue's contractual subordination and dividend-deferral features. Although we consider instruments of this nature to be a weaker form of equity capital, we include them in our calculation of total adjusted capital (up to a limit), which is the numerator in our risk-adjusted capital (RAC) ratio. As of June 30, 2019, Synchrony's RAC ratio was 7.6%. The stable outlook on Synchrony Financial

...November 6, 2019 NEW YORK (S&P Global Ratings) Nov. 6, 2019--S&P Global Ratings today assigned its '##-' rating on Synchrony Financial's issuance of noncumulative perpetual preferred stock. The rating on the series A preferred stock is linked to our long-term issuer credit rating (ICR) on Synchrony. The preferred stock rating is three notches lower than the holding company ICR because of the issue's contractual subordination and dividend-deferral features. Although we consider instruments of this nature to be a weaker form of equity capital, we include them in our calculation of total adjusted capital (up to a limit), which is the numerator in our risk-adjusted capital (RAC) ratio. As of June 30, 2019, Synchrony's RAC ratio was 7.6%. The stable outlook on Synchrony Financial incorporates our expectation that management will continue to execute its capital plan, including the payout of a portion of the excess capital released from the sale of the Walmart portfolio to shareholders (mostly...

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