DBRS Confirms Rating on Ontrea Inc. and OPB (155 Wellington) Inc. (RBC Centre) at AA, Stable Trend

DBRS Limited (DBRS) has today confirmed its rating on the $300 million 4.619% First Mortgage Bonds, due April 9, 2018 (the Bonds), of Ontrea Inc. and OPB (155 Wellington) Inc. (each an Issuer; collectively, the Issuers), secured by RBC Centre (the Complex), at AA with a Stable trend. DBRS notes that RBC Centre and the Bonds are not held in a bankruptcy-remote special-purpose vehicle but are held directly by Ontrea Inc. and OPB (155 Wellington) Inc. As the Bonds continue to be direct joint obligations of the Issuers, the rating confirmation reflects the probability of an event of default of the lower-credit-quality Issuer, despite the fact that recourse for the Bondholders remains limited to the Complex.

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.