DBRS Morningstar Confirms Rating on Hannover Funding Company LLC

DBRS, Inc. (DBRS Morningstar) confirmed its rating on Hannover Funding Company LLC’s 4(2) Commercial Paper at R-1 (middle) (sf).

The rating action is based on the following analytical considerations:

-- The transaction assumptions consider DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary Baseline Macroeconomic Scenarios For Rated Sovereigns: September 2022 Update, published on September 19, 2022. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse COVID-19 pandemic scenarios, which were first published in April 2020.

-- DBRS Morningstar’s Financial Institutions Group’s rating on Norddeutsche Landesbank Girozentrale (NORD/LB) of R-1 (middle) with a Stable trend.

-- NORD/LB provides full support for each transaction within the conduit.

-- The legal construct of the asset-backed commercial paper conduit.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929 (May 17, 2022).

Notes:
The principal methodology is Rating and Monitoring Asset-Backed Commercial Paper: U.S. ABCP Conduits (January 19, 2022), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

This rating is endorsed by DBRS Ratings Limited for use in the United Kingdom, and by DBRS Ratings GmbH for use in the European Union, respectively. The following additional regulatory disclosures apply to endorsed ratings:

The last rating action on this transaction took place on November 26, 2021, when DBRS Morningstar upgraded its rating on Hannover Funding Company LLC’s 4(2) Commercial Paper to R-1 (middle) (sf) from R-1 (low) (sf).

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. DBRS Morningstar understands further information on DBRS Morningstar historical default rates may be published by the Financial Conduct Authority (FCA) on its webpage: https://www.fca.org.uk/firms/credit-rating-agencies.

Lead Analyst: Mark Zelmanovich, Senior Vice President, Credit Ratings
Rating Committee Chair: Ines Beato, Senior Vice President, Credit Ratings
Initial Rating Date: August 29, 2016

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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Rating and Monitoring Asset-Backed Commercial Paper: U.S. ABCP Conduits (January 19, 2022) https://www.dbrsmorningstar.com/research/390845