OREANDA-NEWS. Fitch Ratings assigns the following rating to AT&T Receivables Funding, LLC's September 2016 investment:

--$890,510,492.47 September 2016 investment '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 chargeoffs 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.

Fitch conducts sensitivity analysis by stressing a transaction's initial base case charge-off assumption by an additional 25% and additional 50%, and examining the rating implications. The increases of the base case chargeoffs are intended to provide an indication of the rating sensitivity of the notes to unexpected deterioration of a transaction'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 chargeoff assumptions. Fitch models cash flows with the revised chargeoff estimates while holding constant all other modelling assumptions.

Under the 25% stress, the senior notes would likely be downgraded two notches. Under the 50% stress, the notes would fall an additional two notches, while still remaining investment grade.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

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