OREANDA-NEWS. S&P Global Ratings today assigned its ratings to Synchrony Credit Card Master Note Trust's $910.96 million asset-backed notes series 2016-3 (see list).

The note issuance is an asset-backed securities transaction backed by a pool of private-label and co-branded revolving credit card receivables generated by accounts owned by Synchrony Bank.

The ratings reflect:Our view that the credit support for each class of notes is sufficient to withstand the simultaneous stresses we apply for each rating category to our 8.5% base-case loss rate assumption, 13.0% base-case payment rate assumption, and 21.5% base-case yield assumption, as well as our stressed purchase rate and excess spread assumptions. All of the stress assumptions outlined above are based on our current criteria and assumptions (see "General Methodology And Assumptions For Rating U. S. ABS Credit Card Securitizations," published April 19, 2010, and "Revised Purchase And Payment Rate Assumptions For U. S. Credit Card ABS," published Sept. 14, 2011).Our expectation that under a moderate ('BBB') stress scenario, all else being equal, our 'AAA (sf)', 'AA+ (sf)', and 'AA - (sf)' ratings on the class A, B, and C notes, respectively, will remain within one rating category of the ratings in the next 12 months, and our 'BBB+ (sf)' rating on the class D notes will remain within two rating categories of the rating in the next 12 months, based on our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010).Our view that the 5.5% retained transferor percentage requirement is sufficient to cover dilution risk in this trust. Our view of the credit risk inherent in the collateral loan pool based on our economic forecast, the trust portfolio's historical performance, the collateral characteristics, and vintage performance data. Our opinion of the quality and consistency of Synchrony Bank's account origination, underwriting, account management, and general operational practices and our view of Synchrony Financial's (BBB-/Stable/--) servicing experience. Our expectation for timely interest and ultimate principal payments made by the Sept. 15, 2022, final payment date based on our stressed cash flow modeling scenarios using assumptions commensurate with the ratings. The series 2016-3 transaction's underlying payment structure, cash flow mechanics, and legal structure. The 'BBB+ (sf)' rating assigned to the class D notes is one notch higher than the preliminary 'BBB (sf)' rating assigned to the notes (see "Presale: Synchrony Credit Card Master Note Trust (Series 2016-3)," Sept. 12, 2016). The higher rating reflects additional credit enhancement resulting from the actual coupons on the notes being lower than those assumed in our preliminary rating analysis.

The additional amount of credit enhancement due to the lower coupons did not result in the ratings assigned to the other classes of notes differing from their preliminary ratings.