DBRS Confirms Burlington Mall at BBB

DBRS has today 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 ( the Mall) is located in Burlington, Ontario and is anchored by The Bay, Canadian Tire, and Zellers. The confirmation recognizes the recourse covenants of Ivanhoe Cambridge I Inc., Ivanhoe Cambridge II Inc. and Ivanhoe Cambridge Inc. (collectively Ivanhoe Cambridge).

In 2009, Burlington Mall experienced higher cash flow levels, improved coverage ratios and stable operating metrics following the successfully completion of its multi-year expansion and redevelopment project. For the year ended December 31, 2009, debt service and interest coverage ratios improved to 1.85 times and 2.48 times, respectively.

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. DBRS views these risks as manageable given the Mall’s historical performance.

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

The applicable methodologies are Rating Real Estate and Canadian Structured Finance Flow-Through Ratings, which can be found on our website under Methodologies.