info

Yes No
Moodys.com
Terms of Use
REGULATORY AFFAIRS
CAREERS
DIVERSITY & INCLUSION
.
ABOUT US
.
CONTACT US
HOME
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Can't read?
Try a new set
Send Cancel
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
OK
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
OK
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

Terms of One-Time Website Use

 

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

 

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

 

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

 

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's concludes review on Synchrony cards ABS following increase in credit enhancement

07 Oct 2014

Approximately $4.9 billion of asset-backed securities affected

New York, October 07, 2014 -- Moody's Investors Service has upgraded the ratings of 11 notes, confirmed the ratings of 6 notes and affirmed the ratings of 3 notes issued by Synchrony Credit Card Master Note Trust (formerly known as GE Capital Credit Card Master Note Trust), sponsored by Synchrony Bank (formerly known as GE Capital Retail Bank) (both unrated). These rating actions were prompted by an increase in the credit enhancement for these securities.

Today's rating actions conclude the review of 8 notes placed on review on 17 September 2014 following the implementation of Moody's updated credit card methodology. The updated methodology, "Moody's Approach to Rating Credit Card Receivables-Backed Securities" is available at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF379191

The complete rating actions are as follows:

RATINGS UPGRADED

Issuer: Synchrony Credit Card Master Note Trust

$40,000,000 Series 2010-2 Class B Notes, Upgraded to Aa3 (sf); previously on 17 September 2014 A1 (sf) Placed on Review for Possible Downgrade

$93,770,492 Series 2011-2 Class B Notes, Upgraded to Aa3 (sf); previously on 17 September 2014 Upgraded to A1 (sf)

$75,709,779 Series 2012-2 Class B Notes, Upgraded to Aa3 (sf); previously on 2 February 2012 Assigned A2 (sf)

$57,704,918 Series 2012-3 Class B Notes, Upgraded to Aa3 (sf); previously on 17 September 2014 Upgraded to A1 (sf)

$50,491,803 Series 2012-4 Class B Notes, Upgraded to Aa3 (sf); previously on 17 September 2014 Upgraded to A1 (sf)

$75,709,779 Series 2012-5 Class B Notes, Upgraded to Aa3 (sf); previously on 21 June 2012 Assigned A2 (sf)

$63,091,483 Series 2012-7 Class B Notes, Upgraded to Aa3 (sf); previously on 17 October 2012 Assigned A2 (sf)

$100,946,372 Series 2013-1 Class B Notes, Upgraded to Aa3 (sf); previously on 26 March 2013 Assigned A2 (sf)

$61,803,279 Series 2011-2 Class C Notes, Upgraded to A3 (sf); previously on 17 September 2014 Upgraded to Baa1 (sf)

$38,032,786 Series 2012-3 Class C Notes, Upgraded to A3 (sf); previously on 17 September 2014 Upgraded to Baa1 (sf)

$68,138,802 Series 2013-1 Class C Notes, Upgraded to Baa1 (sf); previously on 17 September 2014 Baa2 (sf) Placed on Review for Possible Downgrade

RATINGS CONFIRMED

Issuer: Synchrony Credit Card Master Note Trust

$250,000,000 Series 2010-2 Class A Notes, Confirmed at Aaa (sf); previously on 17 September 2014 Aaa (sf) Placed on Review for Possible Downgrade

$600,000,000 Series 2012-2 Class A Notes, Confirmed at Aaa (sf); previously on 17 September 2014 Aaa (sf) Placed on Review for Possible Downgrade

$600,000,000 Series 2012-5 Class A Notes, Confirmed at Aaa (sf); previously on 17 September 2014 Aaa (sf) Placed on Review for Possible Downgrade

$500,000,000 Series 2012-7 Class A Notes, Confirmed at Aaa (sf); previously on 17 September 2014 Aaa (sf) Placed on Review for Possible Downgrade

$800,000,000 Series 2013-1 Class A Notes, Confirmed at Aaa (sf); previously on 17 September 2014 Aaa (sf) Placed on Review for Possible Downgrade

$27,500,000 Series 2010-2 Class C Notes, Confirmed at Baa1 (sf); previously on 17 September 2014 Baa1 (sf) Placed on Review for Possible Downgrade

RATINGS AFFIRMED

Issuer: Synchrony Credit Card Master Note Trust

$650,000,000 Series 2011-2 Class A Notes, Affirmed Aaa (sf); previously on 16 June 2011 Assigned Aaa (sf)

$400,000,000 Series 2012-3 Class A Notes, Affirmed Aaa (sf); previously on 18 April 2012 Assigned Aaa (sf)

$350,000,000 Series 2012-4 Class A Notes, Affirmed Aaa (sf); previously on 20 June 2012 Assigned Aaa (sf)

RATINGS RATIONALE

Today's rating actions are driven by the 7 October 2014 execution of amendments to the indenture supplements for Series 2010-2, 2011-2, 2012-2, 2012-3, 2012-4, 2012-5, 2012-7 and 2013-1, which increase the credit enhancement available to the affected securities. Essentially, subordination beneath the trust's Class A, B, and C notes of the affected series has been increased; the size of the increase differs depending on the specific series, and ranges from 0.7% to 7.6% of each series invested amount. As a result of the increases in credit enhancement, the enhancement available for the upgraded notes is now consistent with higher ratings and the enhancement available for the notes that were confirmed or affirmed, is now consistent with the ratings previously assigned.

RATINGS OF OTHER NOTES UNAFFECTED BY AMENDMENTS

Moody's also announced today that the amendments to the indenture supplements for Series 2010-2, 2011-2, 2012-2, 2012-3, 2012-4, 2012-5, 2012-6 (which Moody's does not rate), 2012-7 and 2013-1, would not, in and of themselves and as of this time, result in the downgrade or withdrawal of the ratings assigned to any class of outstanding notes issued by the trust.

The amendments to the indenture supplements, which only add credit enhancement to the notes of the related series, are credit positive for those series, but do not have an effect on the other series. Therefore, Moody's has determined that the execution of the amendments, in and of itself and at this time, will not result in the downgrade or withdrawal of the ratings currently assigned to any class of outstanding notes issued by the trust. However, Moody's opinion addresses only the credit impact associated with the amendments, and Moody's is not expressing any opinion as to whether the amendments have, or could have, other non-credit related effects that may have a detrimental impact on the interests of noteholders and/or counterparties.

Assets of the trust consist of private label and co-branded credit card receivables generated on accounts originated and underwritten by Synchrony Bank. Retailers that are currently included in the trust portfolio are, among others, JCPenney, Lowe's, Sam's Club, Wal-Mart, Dillard's, Gap, Belk and Chevron.

Moody's expects performance in the range of 5.5% - 7.5% for charge-offs, 26.0% - 29.0% for yield and 12.5% - 14.5% for the principal payment rate.

Moody's performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. From time to time, Moody's may, if warranted, change these expectations. Performance that falls outside the given range may indicate that the collateral's credit quality is stronger or weaker than Moody's had anticipated when the related securities were rated. Even so, a deviation from the expected range will not necessarily result in a rating action nor does performance within expectations preclude such actions. The decision to take (or not take) a rating action is dependent on an assessment of a range of factors including, but not exclusively, the performance metrics.

Methodology Underlying the Rating Actions:

The principal methodology used in these ratings was "Moody's Approach To Rating Credit Card Receivables-Backed Securities" published in September 2014. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Factors that would lead to an upgrade or downgrade of the rating:

Up

Moody's could upgrade the ratings of the securities if our expectation of the trust's performance following a sponsor default and portfolio shutdown improves materially, specifically, if the charge-off rate falls or the payment rate or yield rises. An upgrade to the bank sponsor public rating, private monitored rating or low volatility credit estimate, as applicable, could also lead to an upgrade to the rating of the securities, because we use the rating of the sponsor to assess the likelihood of defaulting and shutting down its credit card portfolio.

Down

Moody's could downgrade the ratings of the securities if our expectation of the trust's performance following a sponsor default and portfolio shutdown deteriorates materially, specifically, if the charge-off rate rises or the payment rate or yield falls. A downgrade to the bank sponsor public rating, private monitored rating or low volatility credit estimate, as applicable, could also lead to a downgrade to the rating of the securities, because we use the rating of the sponsor to assess the likelihood of defaulting and shutting down its credit card portfolio.

Loss and Cash Flow Analysis:

In rating this transaction, Moody's uses a cash flow model to determine the collateral losses in a maximum stress scenario. As a second step, Moody's haircuts such collateral losses based on the sponsor's credit quality. Finally, Moody's compares note available credit enhancement with the collateral losses, taking into account loss allocation and other structural features, to derive the expected loss for each rated instrument.

Stress Scenarios:

Moody's quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

Moody's did not receive or take into account a third party assessment on the due diligence performed regarding the underlying assets or financial instruments related to the monitoring of these transactions in the past six months .

Moody's describes the stress scenarios it has considered for this rating action in the section "Ratings Rationale" of this press release.

Moody's describes its loss and cash flow analysis in the section "Rating Rationale" of this press release.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Alan Birnbaum
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Matias Langer
Vice President - Senior Analyst
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's concludes review on Synchrony cards ABS following increase in credit enhancement
No Related Data.
© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​
Moodys.com