OREANDA-NEWS. S&P Global Ratings today assigned its ratings to Verizon Owner Trust 2016-1's $1,169.03 million notes series 2016-1 (see list). The note issuance is an asset-backed securities transaction backed by a revolving pool of wireless device payment plan agreement receivables. The ratings reflect:The transaction's initial revolving phase (up to two years), during which loan collections may be used to purchase additional receivables. The transaction structure includes credit enhancement tests, pool composition tests, and amortization triggers intended to limit deterioration in pool quality and credit enhancement during this period. The availability, when the receivables pool meets the "floor credit enhancement" composition tests, of approximately 32.4%, 26.8%, and 21.2% credit support on average to the class A, B, and C notes, respectively, based on stressed break-even cash flow scenarios. These credit support levels provide coverage of approximately 5.2x, 4.3x, and 3.4x on average to the class A, B, and C notes, respectively, of our expected net loss of 6.2% assuming a worst-case pool mix. The floor credit enhancement composition tests are met when the receivables pool meets a higher credit quality threshold compared with the pool composition tests. The availability, when the receivables pool meets the "pool" composition tests, of approximately 35.0%, 29.8%, and 24.4% credit support on average to the class A, B, and C notes, respectively, based on stressed break-even cash flow scenarios. These credit support levels provide coverage of approximately 5.1x, 4.3x, and 3.6x on average to the class A, B, and C notes, respectively, of our expected net loss of 6.9% assuming a worst-case pool mix. Our expectation that during the amortization phase and under a moderate ('BBB') stress scenario, the ratings on the class A and B notes would remain within one rating category of our 'AAA (sf)' and 'AA (sf)' ratings, respectively, and the rating on the class C notes would remain within two rating categories of our 'A (sf)' rating within one year. These potential rating movements are consistent with our credit stability criteria (see "Methodology: Credit Stability Criteria," published May 3, 2010).The credit enhancement in the form of subordination, overcollateralization, a reserve account, and the yield supplement overcollateralization amount. The timely interest and full principal payments made under stressed cash flow modeling scenarios appropriate to the assigned ratings. The eligibility criteria for the revolving pool being securitized. The transaction's floor credit enhancement composition tests, pool composition tests, credit enhancement test, amortization events, and legal structure.