DBRS Confirms Rating on Ontrea Inc. (Lime Ridge Mall) at AA, Stable Trend

DBRS Limited (DBRS) has today confirmed the $181 million 5.317% First Mortgage Bonds, due 6/1/2020 (the Bonds) of Ontrea Inc. (the Issuer), secured by Lime Ridge Mall (Lime Ridge or the Shopping Centre), at AA with a Stable trend. DBRS notes that Lime Ridge and the Bonds are not held in a bankruptcy-remote special-purpose vehicle but are held by Ontrea Inc. As the Bonds continue to be direct obligations of the Issuer, the rating confirmation reflects the probability of an event of default at the Issuer level, despite the fact that recourse for the Bondholders remains limited to the Shopping Centre.

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

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

DBRS will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, contact us at info@dbrs.com.