According to Fitch Ratings, General Electric’s plan to take its North American retail finance business public is not likely to affect existing GE Capital Credit Card Master Note Trust (GEMNT).

The GE unit, to be called Synchrony Financial, is the largest U.S. issuer of retail credit cards. Fitch said it rates approximately $9.2 billion of GEMNT ABS.

Fitch said while the IPO may increase servicing and contract renewal risk, these issues will be adequately mitigated by the available credit enhancement and structural protections afforded current GEMNT investors. We also believe the outstanding GEMNT series maintain ample cushion to absorb any performance deterioration of the securitized credit card receivables.

Any deterioration in performance is covered under multiple stress scenarios employed in Fitch’s cash flow modeling. We modeled a full purchase rate stress (which assumes no generation of new receivables during an early amortization period). Even under this extreme scenario, break-even multiples for the trust remain consistent with existing ratings.