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      Scope has completed a monitoring review for Landwirtschaftliche Rentenbank
      MONDAY, 07/07/2025 - Scope Ratings GmbH
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      Scope has completed a monitoring review for Landwirtschaftliche Rentenbank

      The periodic review has resulted in no rating action.

      Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the cases of sovereigns, sub-sovereigns and supranational organisations that may act as a lender of last resort.

      Scope performs monitoring reviews to determine whether material changes and/or changes in macro-economic or financial-market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

      Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit rating’s performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope announces the result of each monitoring review on its website and/or on its subscription platform ScopeOne.

      Scope completed the monitoring review for Landwirtschaftliche Rentenbank (Rentenbank) (long-term local- and foreign-currency issuer and senior unsecured debt ratings: AAA/Stable; short-term local- and foreign-currency issuer ratings: S-1+/Stable) on 1 July 2025.

      This monitoring note does not constitute a credit-rating action, nor does it indicate the likelihood that Scope will conduct a credit-rating action in the short term. Information about the latest credit-rating action connected with this monitoring note along with the associated ratings history can be found on scoperatings.com.

      Key rating factors

      For the updated rating report accompanying this review, please see here.

      Rentenbank’s AAA/Stable ratings are equalised with those of the Federal Republic of Germany (AAA/Stable and S-1+/Stable) given the explicit, unconditional, unlimited, statutory, direct and irrevocable guarantee by the sovereign for Rentenbank’s obligations. In addition, Rentenbank benefits from an institutional liability, or ‘Anstaltslast’, assumed by the Federal Republic of Germany.

      The rating is further underpinned by: i) a mature and very supportive legal set-up, which makes changes to Rentenbank’s business model or guarantee structure unlikely; ii) the bank’s high strategic importance to the German federal government, where it plays a critical role in implementing Germany’s economic, environmental and agricultural policy as a crucial government-related entity (GRE) with a clearly defined public mission to support agriculture investment and rural development; iii) the bank’s strong capital metrics and solid asset quality, and iv) a strong funding and liquidity profile with excellent access to capital markets.

      Challenges relate to Rentenbank’s high concentration of its exposure in Germany and to financial institutions as well as its modest but stable profitability, both foreseen by the bank’s public policy mandate.

      The Stable Outlook represents Scope’s view that risks to the ratings over the next 12 to 18 months are balanced.

      Downside scenarios for the ratings and Outlooks are (individually or collectively):

      1. the Federal Republic of Germany was downgraded; and/or
         
      2. changes to Rentenbank’s legal framework or guarantee structure notably weakened government support.

      The methodology applicable for the reviewed ratings and/or rating Outlooks (Government Related Entities, 10 December 2024) is available on scoperatings.com/governance-and-policies/rating-governance/methodologies.
      This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
      Lead analyst: Julian Zimmermann, Director

      © 2025 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Fund Analysis GmbH, Scope Innovation Lab GmbH and Scope ESG Analysis GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5, D-10785 Berlin. Public Ratings are generally accessible to the public. Subscription Ratings and Private Ratings are confidential and may not be shared with any unauthorised third party.

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