Fitch affirms Synchrony

Fitch Ratings said it affirmed Synchrony Financial's long-term issuer default rating at BBB-, viability rating at bbb- and short-term issuer default rating at F3.

The outlook is negative.

“The affirmation of SYF's ratings reflect its strong capitalization and liquidity levels, increased funding diversity as a result of strong deposit growth at Synchrony Bank (SYB), consistent operating performance, due in part to risk-sharing arrangements with retail partners, market-leading position in the U.S. private-label card industry, and seasoned management team,” the agency said in a news release.

“The ratings remain constrained by SYF's monoline business model, high retail partner concentration, an above-average mix of non-prime borrowers relative to general-purpose card-issuing peers, and potential sensitivity of its deposit base to rising interest rates.”

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