DBRS Rates Crombie’s $175 Million Series A Senior Unsecured Debentures at BBB (low)

DBRS has today assigned a rating of BBB (low), with a Stable trend, to the $175 million 3.986% Series A senior unsecured debentures due October 31, 2018 (the Bonds), issued by Crombie Real Estate Investment Trust (Crombie or the Trust).

The Bonds are direct senior unsecured obligations of Crombie and rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust. On July 24, 2013, Crombie announced an acquisition agreement to purchase a portfolio of retail properties from a wholly owned subsidiary of Sobeys Inc. (the Acquisition).

DBRS understands that the net proceeds from the offering will be applied either directly or indirectly toward partial payment of the purchase of price of the Acquisition.

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

The applicable methodology is Rating Real Estate Entities (October 2013), which can be found on our website under Methodologies.