Fitch Rates AT&T Receivables Funding LLC March 2016; Affirms AT&T Receivables Funding LLC June 2015

NEW YORK–(BUSINESS WIRE)–Fitch Ratings assigns the following rating to AT&T Receivables Funding,
LLC’s March 2016 investment:

–$1,521,031,575.22 March 2016 investment ‘Asf’; Outlook Stable.

Fitch Ratings affirms the following rating:

AT&T Receivables Funding, LLC:

–June 2015 investment at ‘Asf’; Outlook Stable.

KEY RATING DRIVERS

Fitch’s ratings are based on the underlying cell phone installment
contract pools, available credit enhancement (CE), AT&T’s underwriting
and servicing capabilities, the transaction’s legal and cash flow
structures, and a rating cap at ‘Asf’.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults or charge-offs on
customer accounts could produce loss levels higher than the base case
and would likely result in declines of CE and remaining loss coverage
levels available to the investments. Decreased CE may make certain
ratings on the investments susceptible to potential negative rating
actions, depending on the extent of the decline in coverage. Hence,
Fitch conducts sensitivity analysis by stressing a transaction’s initial
base case charge-off assumption by 1.5x and 2.5x and examining the
rating implications. The 1.5x and 2.5x increase of the base case account
charge-offs represents moderate and severe stresses, respectively, and
are intended to provide an indication of the rating sensitivity of the
notes to unexpected deterioration of a trust’s performance.

During the sensitivity analysis, Fitch examines the magnitude of the
multiplier compression by projecting the expected cash flows and loss
coverage levels over the life of investments under higher than the
initial base case charge-off assumptions. Fitch models cash flows with
the revised charge-off estimates while holding constant all other
modeling assumptions.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to
this rating action.

The publication of a RW&Es appendix is not required for this transaction.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14
May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Rating Caps and Limitations in Global Structured Finance
Transactions (pub. 28 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Global Consumer ABS Rating Criteria (pub. 03 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874105

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1001843

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1001843

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Melvin Zhou
Director
+1-212-908-0503
Fitch
Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary
Analyst
Harry Kohl
Director
+1-212-908-0837
or
Committee
Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media
Relations
Sandro Scenga
+1-212-908-0278
New York
[email protected]