Bread FinancialTM Obtains Inaugural Holding Company Issuer Credit Ratings

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Bread Financial Holdings, Inc. (BFH) has obtained inaugural Holding Company issuer credit ratings from Fitch, Moody’s, and S&P Global, with stable outlooks. The ratings are as follows: Fitch BB-, Moody’s Ba3, S&P Global BB-. This marks a significant milestone in the company's transformation, reflecting progress in strengthening its balance sheet, capital metric improvement, and debt reduction. The company aims to enhance funding flexibility, strengthen financial resilience, and drive long-term value creation.

COLUMBUS, Ohio--(BUSINESS WIRE)-- Bread Financial Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, today announced it has obtained inaugural Holding Company issuer credit ratings from Fitch, Moody’s and S&P Global. The following credit ratings were assigned this morning with stable outlooks.

Rating Agency	Holding Company Credit Rating
Fitch	BB-
Moody’s	Ba3
S&P Global	BB-

“Today’s announcement marks another milestone in our transformation, reflecting the significant progress we have made to strengthen Bread Financial’s balance sheet, including capital metric improvement and debt reduction,” said Ralph Andretta, president and chief executive officer of Bread Financial. “Obtaining inaugural Holding Company ratings further expands our financing opportunities. We remain focused and committed to enhancing our funding flexibility, strengthening financial resilience, and driving long-term value creation.”

About Bread Financial^™

Bread Financial^TM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay™ buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback^TM American Express^® Credit Card and Bread Savings^TM products.

Headquartered in Columbus, Ohio, Bread Financial is powered by its 7,500+ global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, rising interest rates, unemployment levels and the increased probability of a recession, and the related impact on consumer payment rates, savings rates and other behavior; global political and public health events and conditions, including ongoing wars and military conflicts; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax liability, disputes or other adverse impacts arising out of or relating to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. and certain of its subsidiaries. In addition, a final CFPB ruling is anticipated in the coming months that could place significant limits on credit card late fees; we cannot provide any assurance as to when any such rule will be issued, the provisions or effective date of any such rule, the result of any litigation relating to such rule, or our ability to mitigate or offset the impact of any such rule on our business and results of operations. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231127524009/en/

Brian Vereb — Investor Relations

Brian.Vereb@breadfinancial.com

Susan Haugen — Investor Relations

Susan.Haugen@breadfinancial.com

Rachel Stultz — Media

Rachel.Stultz@breadfinancial.com

Source: Bread Financial

FAQ

What are the credit ratings obtained by Bread Financial Holdings, Inc. (BFH)?

Bread Financial Holdings, Inc. (BFH) has obtained inaugural Holding Company issuer credit ratings from Fitch, Moody’s, and S&P Global, with stable outlooks. The ratings are as follows: Fitch BB-, Moody’s Ba3, S&P Global BB-.

Who is the president and chief executive officer of Bread Financial Holdings, Inc. (BFH)?

Ralph Andretta is the president and chief executive officer of Bread Financial Holdings, Inc. (BFH).

What does obtaining inaugural Holding Company ratings mean for Bread Financial Holdings, Inc. (BFH)?

Obtaining inaugural Holding Company ratings marks a significant milestone in the company's transformation, reflecting progress in strengthening its balance sheet, capital metric improvement, and debt reduction. It further expands the company's financing opportunities and aims to enhance funding flexibility, strengthen financial resilience, and drive long-term value creation.