DBRS Releases Performance Update for Data Centres Trust

Dominion Bond Rating Service (“DBRS”) has today released a performance update for Data Centres Trust’s Asset-Backed Notes, Series A.

The transaction is a straight pass-through of the rental obligations of the tenants of ten assets. The notes are fully amortizing and have a current balance of Cdn$73.9 million, which, if based on the original appraised value of the properties, equates to a loan-to-value of 50.13%. This compares favourably to the original loan-to-value of 69.8%. The rating of the notes is primarily based upon the credit quality of the major tenant, Royal Bank of Canada (“RBC”), which accounts for 88% of the rental payment stream. DBRS currently rates the subordinated debt of RBC at A (high) with a Stable trend.

DBRS has published a full report providing additional analytical detail. Click on the link below for the report or contact us at: info@dbrs.com.