DBRS Morningstar Confirms, Discontinues Rating on Liquidity Asset Purchase Agreement Supporting Hannover Funding Company LLC Series 179

DBRS Inc. (DBRS Morningstar) confirmed the rating of A (high) (sf) and then subsequently discontinued the rating on the Liquidity Instrument pursuant to the Liquidity Asset Purchase Agreement for Hannover Funding Company LLC – Series 179 (LAPA – Series 179).

The rating on the LAPA – Series 179 was discontinued at the request of the Issuer.

The rating is based on DBRS Morningstar’s review of the following analytical considerations:
-- Transaction capital structure, proposed ratings, and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting, and servicing.
-- The credit quality of the collateral pool and its historical performance.

LAPA – Series 179 was a Liquidity Instrument for Hannover Funding Company LLC, an ABCP conduit administered by Nordeutsche Landesbank Girozentrale.

LAPA – Series 179 was backed by trade receivables that were reviewed for their ability to perform within certain thresholds for loss reserves, carrying costs, and dilution, as well as other factors specific to the trade receivables portfolio.

The rating on the Liquidity Instrument addressed the timely payment of interest and ultimate payment of principal in accordance with the transaction documents.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:

The principal methodologies were Trade Receivables (October 6, 2020) and Rating and Monitoring Asset-Backed Commercial Paper: U.S. ABCP Conduits (February 5, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

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.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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