DBRS Confirms Markville and Chinook Shopping Centres at A (high) with a Stable Trend

DBRS has today confirmed the 10.79% Secured Debentures, Series D, due April 15, 2012 (“the Debentures”), of Markville Shopping Centre and Chinook Centre (Markville and Chinook or the Properties) at A (high). The confirmation reflects the strong operating fundamentals for the Properties in addition to the low leverage and the strong outlook for the assets through the remaining term of the Secured Debentures.

The Properties are well-located, dominant shopping centres in their respective markets and continue to exhibit strong performance characteristics as of YE2010, with a DSCR of 6.28 times on an outstanding balance of approximately $63 million, as of the October 2011 remittance. Additionally, the LTV is excellent, at 9.9% based on a stressed value derived by DBRS with a reversionary cap rate. Given the low leverage, strong credit metrics, and mitigants to near-term tenant rollover in the strong sales performance at both properties and the experienced management in Cadillac Fairview, DBRS anticipates the Debentures will repay in full at maturity.

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

The applicable methodologies are Rating Real Estate Entities, which can be found on our website under Methodologies.