S&P lifts Synchrony view to stable

S&P said it revised the outlook on Synchrony Financial and its bank subsidiary, Synchrony Bank, to stable from negative.

The agency also said it affirmed Synchrony Financial's ratings at BBB- and Synchrony Bank's BBB.

The outlook revision reflects Synchrony's success at renewing key client partnerships over the past six months, the agency said.

The ratings consider the company's agreement to sell its Walmart receivables portfolio to the new client card issuer, expected to close in the last half of 2019, S&P said.

The company is expected to maintain peer-leading risk-adjusted capital (RAC) metrics following the sale, despite its intention to pay out a majority of the proceeds to shareholders, the agency said.

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