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

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