DBRS Rates Morguard’s $200 Million Series B Senior Unsecured Debentures at BBB (low), Stable

DBRS Limited (DBRS) has today assigned a rating of BBB (low) with a Stable trend to the $200 million 4.013% Series B Senior Unsecured Debentures (the Series B Bonds), due November 18, 2020, issued by Morguard Corporation (Morguard or the Company).

The Series B Bonds will be direct senior unsecured obligations of Morguard and will rank equally and rateably with one another and with all other unsecured and unsubordinated Non-Consolidated Indebtedness of the Company, except to the extent prescribed by law. DBRS understands that Morguard will use the net proceeds to repay first mortgage indebtedness, indebtedness (including indebtedness incurred in connection with the acquisition of a 59% interest in an entity that owns a multi-unit residential building located at 5939 Sunset Boulevard, Los Angeles, CA) under operating lines of credit and for general corporate purposes.

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

The applicable methodology is Rating Entities in the Real Estate Industry (June 2016), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.