DBRS Downgrades Rating on Liquidity Asset Purchase Agreement Supporting Hannover Funding Company LLC Series 179

DBRS, Inc. (DBRS) downgraded the rating on the Liquidity Instrument pursuant to the Liquidity Asset Purchase Agreement (LAPA) for Hannover Funding Company LLC - Series 179, pursuant to the LAPA Transaction Supplement to A (high) (sf) from AA (low) (sf). This downgrade was pursuant to the Amendment Agreement No. 5 dated as of August 31, 2018, which is supported by LAPA - Series 179.

The downgrade was primarily due to increases in concentration limits that are commensurate with a singular “A” rating as per DBRS’s “Trade Receivables” methodology. The downgrade is not performance related.

LAPA - Series 179 is a Liquidity Instrument for Hannover Funding Company LLC, an asset-backed commercial paper conduit administered by Norddeutsche Landesbank Girozentrale.

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

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

DBRS notes that the above press release was amended on July 30, 2019, to add a note regarding the endorsement by DBRS Ratings Limited. The amendment was minor and would not impact the understanding of the reader.

Notes:
The principal methodology is Trade Receivables, which can be found on dbrs.com under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

This rating was not initiated at the request of the rated entity.

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

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