DBRS Morningstar Confirms Rating on Hannover Funding Company LLC

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

The rating confirmation is based on DBRS Morningstar’s review of the following analytical considerations:

-- The transaction assumptions consider DBRS Morningstar’s set of macroeconomic scenarios for select economies related to the Coronavirus Disease (COVID-19) pandemic, available in its commentary “Global Macroeconomic Scenarios: September Update,” published on September 10, 2020. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which have been regularly updated. The scenarios were last updated on September 10, 2020, and are reflected in DBRS Morningstar’s rating analysis.

-- Given the nature of the credit support within this asset-backed commercial paper (ABCP) conduit, the coronavirus pandemic has limited impact. DBRS Morningstar does not believe that additional stresses are warranted in the analysis at this time.

-- The support the Liquidity Agreement provides for each transaction within the conduit.

-- The support NordLB provides for the commercial paper investor.

-- The legal construct of the ABCP conduit.

-- The rating of NordLB.

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:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is 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 did have 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 (DBRS Morningstar) for use in the European Union. The following additional regulatory disclosures apply to endorsed ratings:

The last rating action on this transaction took place on November 27, 2019, when DBRS Morningstar confirmed the Hannover Funding Company LLC’s 4(2) Commercial Paper at 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

Lead Analyst: Matthew La Capra, Senior Vice President, U.S. ABS– Global Structured Finance
Rating Committee Chair: Christopher D'Onofrio, Managing Director, U.S. ABS - Global Structured Finance
Initial Rating Date: August 29, 2016

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

-- Rating and Monitoring Asset-Backed Commercial Paper: U.S. ABCP Conduits (February 5, 2020):
https://www.dbrsmorningstar.com/research/356459/rating-and-monitoring-asset-backed-commercial-paper-us-abcp-conduits.