Synchrony Financial is marketing two offerings of notes backed by credit card receivables through its Synchrony Credit Card Master Trust.
Standard & Poor’s has assigned preliminary ratings to $422.9 million three-year fixed-rate notes (Series 2014-3) and $357.9 million five-year fixed-rate notes (Series 2014-4).
The senior tranches of each deal benefit from credit support of 27% and are rated ‘AAA.’
General Electric Capital Corp is the servicer; Synchrony Financial is the subservicer and administrator.
Barclays Capital, Citigroup Global Markets, SG Americas Securities, BNP Paribas Securities, Mitsubishi UFJ Securities (USA), Natixis Securities America, and The Williams Capital Group are the underwriters.
In its presale report, S&P noted that credit support available for the class A, B, and C notes from both the series 2015-3 and 2015-4 will be lower than that of series 2015-2. Class A will have 27.00% versus 28.00% for 2015-2, class B will have 20.00% versus 21.00%, class C will have 14.00% versus 15.00%, and class D will have the same 5.00% credit support.
The composition of retailers in this trust is more concentrated than in other multi-retailer private-label trusts, with the top four merchants – Walmart, JC Penney, Lowe’s, and The Gap – accounting for approximately 87.8% of the receivables and 81.1% of the number of accounts in the pool, according to the rating agency.