DBRS Assigns Rating of AA (high) to the Mortgage Loan No. 814650.1 made to South Block (Concert) Ltd. and Jawl Precinct Lands Corporation - 525 Superior Street

DBRS Limited (DBRS) assigned a new rating of AA (high) to the Mortgage Loan No. 814650.1 (the Mortgage Loan) made to South Block (Concert) Ltd. and Jawl Precinct Lands Corporation – 525 Superior Street (collectively, the Borrowers) by a major Canadian financial institution (the Lender).

The Mortgage Loan is secured by a Class AA office and retail building (the Property). The office space, which represents, the majority of the net rentable area, is leased to one single tenant (the Tenant) on a triple net basis and for an initial term that matches the term and amortization period of the Mortgage Loan, with no rights to early termination. The Mortgage Loan is rated at the same level as the Tenant, as all the financial obligations from the Borrowers with respect to the Mortgage Loan are covered by the cash flows from the Tenant’s lease. As indicated in the “Credit Tenant Lease” section of Appendix A of DBRS’s “North American CMBS Multi-borrower Rating Methodology”, given the importance of the Tenant and its credit rating, any change to the rating of the Tenant during the term of the transaction is expected to have an effect on the rating of the Mortgage Loan.

The rating has been assigned at the request of the Lender.

Notes:
The principal methodology is the North American CMBS Multi-borrower Rating Methodology, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.