DBRS Confirms Burlington Mall at BBB

DBRS has confirmed the rating on the Series III Debentures (the Debentures), due March 31, 2013, of Burlington Mall at BBB with a Stable trend. Burlington Mall is located in Burlington, Ontario and is anchored by The Bay, Canadian Tire, and Zellers. The confirmation reflects the recourse covenants of Ivanhoe Cambridge I Inc., Ivanhoe Cambridge II Inc. and Ivanhoe Cambridge Inc. (collectively Ivanhoe Cambridge), which the current rating level is based.

In 2008, Burlington Mall experienced increased net operating income (NOI) higher, improved coverage ratios and stable operating metrics. Performance benefited from the 2007 completion of an following the successfully completion of its multi-year expansion and development project. For the year ended December 31, 2008, debt service and interest coverage ratios improved to 1.81 times and 2.35 times, respectively.

In 2009, DBRS anticipates continued uplift in NOI and DSCR.

Overall, Burlington Mall’s enhanced tenant profile and draw should continue to put the Mall in a good position to benefit from a growing local population base with nearby residential development. However, Burlington Mall will likely have to contend with an increasingly competitive retail environment that could pressure operating performance and the Mall’s anchor tenants going forward.

Note:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Real Estate, which can be found on our website under Methodologies.

This is a Corporate rating.