DBRS Removes Under Review Status and Confirms Centennial Place Ratings

DBRS Limited (DBRS) has today confirmed the AA (low) ratings of the $210 million Centennial Place 3.666% Senior Series A Secured Bonds due 2022 and the $210 million Centennial Place 3.04% Senior Series B Secured Bonds due 2017 (collectively, the Bonds) issued by OMERS Realty Corporation (ORC) (ORC; rated AA (low) with a Stable trend by DBRS); 9856889 Canada Inc. (985); and Canada Pension Plan Investment Board Real Estate Holdings Inc. (CPPIB REH; each an Issuer; collectively with ORC and 985, the Issuers) and secured by Centennial Place (the Complex). All trends are Stable. This rating action removes the Under Review with Developing Implications status.

On September 1, 2016, DBRS placed the ratings of the Bonds Under Review with Developing Implications following the sale of a 50% ownership interest in the Complex (the Transaction) from ORC to CPPIB REH. ORC retained a 50% legal and beneficial interest, CPPIB REH holds an undivided 50% beneficial interest in the Complex and 985 holds an undivided 50% legal interest in the Complex (as nominee and bare trustee) for and on behalf of CPPIB REH.

DBRS’s review focused on all executed documents in connection with the Transaction, including the co-owner’s agreement, supplemental indenture and legal opinions issued with respect to the Issuers.
Following its review, DBRS confirmed that CPPIB REH has assumed a 50% interest in all rights and obligations of the Bonds related to the Trust Indenture, the security, the mortgage and such other transaction documents related to jointly owning the Complex. The Bonds continue to be direct joint obligations of the Issuers, and recourse for the bondholders remains limited to the Complex.

RATING DRIVERS
DBRS would consider a negative rating action should either of the Issuers’ credit risk profiles deteriorate.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The principal methodology is Rating Entities in the Real Estate Industry (February 2017), which can be found on dbrs.com under Methodologies.

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