DBRS Morningstar Assigns R-1 (middle) Rating to Coöperatieve Rabobank’s EUR 20 Billion Negotiable European Commercial Paper Programme

DBRS Ratings GmbH (DBRS Morningstar) assigned an R-1 (middle) rating with a Stable trend to the EUR 20 billion Negotiable European Commercial Paper Programme of Coöperatieve Rabobank (Rabobank or the Bank). The Programme is for the issuance of short-term debt securities with maturities not exceeding 365 days (366 days in a leap year) from the issue date. These securities constitute direct, unsecured and unsubordinated obligations and rank pari passu with the Issuer’s other current and future direct, unsecured, and unsubordinated liabilities, except those which may be mandatorily preferred by law. The rating is in line with the Short-Term Debt rating of Rabobank.

RATING DRIVERS

The rating for this Programme will move in tandem with the Short-Term Debt rating of Rabobank. An upgrade of Rabobank’s Short-Term Debt would lead to an upgrade of the Programme.

Conversely, a downgrade of Rabobank’s Short-Term Debt would result in a downgrade of the Programme.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

The subfactor ‘corporate governance’ is relevant to the rating of Rabobank, and this is reflected in the franchise grid grades for the bank. At end the of 2021, Rabobank received a draft instruction from the Dutch Central Bank (DNB) to rectify its deficiencies in its compliance and risk framework related to the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act by December 2024 at the latest. DNB also announced that a punitive enforcement procedure will commence, with the final outcome still unknown. In the first half of 2022, Rabobank invested EUR 294 million in a know your customer (KYC) compliance program. DBRS Morningstar will continue to closely monitor the development of this and any further announcements made by DNB.

There were no Environmental/Social 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 (17 May 2022) - https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings

Notes:

All figures are in EUR unless otherwise noted.

The principal methodology is the Global Methodology for Rating Banks and Banking Organisations - https://www.dbrsmorningstar.com/research/398692/global-methodology-for-rating-banks-and-banking-organisations (23 June 2022). In addition DBRS Morningstar uses the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings
in its consideration of ESG factors.

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

The sources of information used for this rating include Morningstar Inc. and Company Documents, Rabobank EUR 20 billion Negotiable European Commercial Paper Programme 2022 Memorandum. DBRS Morningstar considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

This rating concerns a newly issued financial instrument. This is the first DBRS Morningstar rating on this financial instrument.

DBRS Morningstar does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar's outlooks and ratings are under regular surveillance.

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. 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.

The sensitivity analysis of the relevant key rating assumptions can be found at: https://www.dbrsmorningstar.com/research/414351

This rating is endorsed by DBRS Ratings Limited for use in the United Kingdom.

Lead Analyst: Sonja Forster, Vice President, Global FIG
Rating Committee Chair: Elisabeth Rudman, Managing Director, Head of Global FIG
Initial Rating Date: 23 May 2023
Last Rating Date: 23 May 2023

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