OREANDA-NEWS. Fitch Ratings assigns the following ratings to Synchrony Credit Card Master Note Trust's asset-backed notes, series 2016-1:

--$750,000,000 class A fixed-rate 'AAAsf'; Outlook Stable;
--$71,917,808 class B fixed-rate 'AAsf'; Outlook Stable;
--$61,643,836 class C fixed-rate 'Asf'; Outlook Stable;
--$92,465,753 class D fixed-rate 'NR'.

KEY RATING DRIVERS
Fitch's expected ratings are based on the underlying receivables pool, available credit enhancement, Synchrony Bank's underwriting, Synchrony Financial's servicing, and the transaction's legal and cash flow structures, which employ early redemption triggers.

RATING SENSITIVITIES
Fitch models three different scenarios when evaluating the rating sensitivity compared to expected performance for credit card asset-backed securities transactions: 1) increased defaults; 2) a reduction in purchase rate; and 3) a combination stress of higher defaults and lower monthly payment rate (MPR).

Increasing defaults and reducing purchase rate alone have the least impact on rating migration even in the most severe scenario of a 75% increase in defaults. The harshest scenario assumes both stresses in increased chargeoffs and reduction to MPR to occur simultaneously. Similarly, the ratings would only be downgraded under the moderate stress of a 50% increase in defaults and 25% reduction in MPR; however, the severe stress could lead to more drastic downgrades to all classes.

To date, the transactions have exhibited strong performance with all performance metrics within Fitch's initial expectations. For further discussion of our sensitivity analysis, please see the related presale report. For a discussion of the representations, warranties, and enforcement mechanisms available to investors in this transaction please see the related presale appendix.

DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.