DBRS Assigns Rating of BBB to Granite REIT Holdings Limited Partnership’s $400 Million Series 3 Senior Debentures

DBRS Limited (DBRS) has today assigned a rating of BBB with a Stable trend to the $400 million 3.873% Series 3 Senior Debentures due November 30, 2023 (the Bonds), issued by Granite REIT Holdings Limited Partnership (Granite LP).

The Bonds are direct senior unsecured obligations of Granite LP and will rank equally and rateably in right of payment with one another and with all other unsecured and unsubordinated indebtedness of Granite LP (including Indebtedness under the Amended and Restated Senior Credit Agreement dated December 11, 2014 (the Credit Agreement)). The Bonds will be fully and unconditionally guaranteed, on a joint and several basis, by Granite Real Estate Investment Trust and Granite GP and by any Subsidiary of Granite LP that in the future becomes a guarantor under the Credit Agreement.

DBRS understands that Granite LP will use the net proceeds from the offering to refinance certain outstanding debt, including the redemption in full of the $200 million aggregate principal amount outstanding of 4.613% Series 1 Senior Debentures due October 2, 2018, and for general corporate purposes.

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

The applicable methodologies are Rating Entities in the Real Estate Industry (June 2016), DBRS Criteria: Guarantees and Other Forms of Support (February 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.