DBRS Morningstar Confirms Rating on Hannover Funding Company LLC’s 4(2) Commercial Paper at R-1 (middle) (sf)

DBRS, Inc. (DBRS Morningstar) confirmed its rating on the 4(2) Commercial Paper issued by Hannover Funding Company LLC.

The rating actions are 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 2023 Update, published on September 28, 2023. 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/416784 (July 4, 2023).

Notes:
The principal methodology applicable to the credit rating is Rating and Monitoring Asset-Backed Commercial Paper: U.S. ABCP Conduits (https://www.dbrsmorningstar.com/research/408759) (January 24, 2023).

Other methodologies referenced in this transaction are listed at the end of this press release.

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.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

This credit 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 credit ratings:

The last rating action on this transaction took place on November 18, 2022, when DBRS Morningstar confirmed its rating on Hannover Funding Company LLC’s 4(2) Commercial Paper at R-1 (middle) (sf).

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on DBRS Morningstar historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

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

DBRS, Inc.
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New York, NY 10005 USA
Tel. +1 212 806-3277

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

Operational Risk Assessment for U.S. ABS Servicers (July 20, 2023), https://www.dbrsmorningstar.com/research/417415

Operational Risk Assessment for U.S. ABS Originators (July 20, 2023), https://www.dbrsmorningstar.com/research/417416

Interest Rate Stresses for U.S. Structured Finance Transactions (June 9, 2023),
https://www.dbrsmorningstar.com/research/415687

Legal Criteria for U.S. Structured Finance (December 7, 2022),
https://www.dbrsmorningstar.com/research/407008

Rating U.S. Structured Finance Transactions (September 22, 2023),
https://www.dbrsmorningstar.com/research/421053)

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