DBRS Upgrades Ivanhoe Cambridge I Inc 10.18% Series III Secured Debentures due March 31, 2013

DBRS has today upgraded the 10.18% Series III Secured Debentures due March 31, 2013 (the Series III Debentures) issued by Ivanhoe Cambridge I Inc. (the Issuer) and secured by Montréal Eaton Centre to A (high). The trend is Stable.

The rating action follows the Issuer’s substitution of the collateral that secured the Series III Debentures. The Series III Debentures were previously secured by Burlington Mall and are now secured by Montréal Eaton Centre, a shopping mall located just a few blocks east of McGill University and at the heart of the Montréal underground city, which features 30 kilometres of tunnels.

The upgrade reflects the increased value and higher sustainable cash flow with the new collateral. When compared with the outstanding debt on the Series III Debentures, this has resulted in a significant improvement in the credit metrics.

DBRS will publish a full rating report in the coming weeks.

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