DBRS Removes UR-Dev Status, Confirms Centennial Place FMBs Series A Ratings and Discontinues Series B Ratings

DBRS Limited (DBRS) confirmed the AA (low) ratings of the Centennial Place Series A First Mortgage Bonds (FMBs) and discontinued the ratings of Series B FMBs. All trends are Stable. These rating actions remove Centennial Place’s Under Review with Developing Implications status.

The Centennial Place 3.666% Senior Series A Secured Bonds due 2022 and the Centennial Place 3.04% Senior Series B Secured Bonds due 2017 (collectively, the Bonds) were issued by OMERS Realty Corporation (ORC; rated AA (low) with a Stable trend by DBRS), 9856889 Canada Inc. and Canada Pension Plan Investment Board Real Estate Holdings Inc. Recourse is limited to the property only. On September 19, 2017, DBRS placed the ratings of the Bonds Under Review with Developing Implications to reflect the Developing Implications of the Series B bonds, which were scheduled to mature on December 5, 2017. The issuers confirmed that as at December 5, 2017, the Series B bonds were fully repaid, and the Series A bonds have $188.8 million principal outstanding.

The current ratings reflect the credit quality of Series A Bonds after the repayment of Series B Bonds, supported by the results of DBRS analytics, which indicate a DBRS Exit Debt Yield of 16.0% and DBRS Current and DBRS Refi loan-to-value of 56.1% and 48.5%, respectively, based on DBRS’s stressed net cash flow, which was 47.6% lower than annualized trailing ten-month operating cash flow as at October 31, 2017.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

DBRS has provided updated loan-level commentary in the DBRS Viewpoint platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please register or log into DBRS Viewpoint at viewpoint.dbrs.com.

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 under Related Documents or by contacting us at info@dbrs.com.

The principal methodology is North American Single-Asset/Single-Borrower Methodology, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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

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