DBRS Places CREIT’s Rating Under Review with Developing Implications

DBRS Limited (DBRS) placed Canadian Real Estate Investment Trust’s (CREIT or the Trust) Senior Unsecured Debenture rating of BBB Under Review with Developing Implications following the Trust’s announcement of an offer from Choice Properties Real Estate Investment Trust (CP REIT; see DBRS press release dated February 15, 2018) to acquire all of CREIT’s assets for approximately $6.0 billion (the Transaction) in shares, assumed debt and cash.

The Under Review with Developing Implications status reflects CP REIT’s potential assumption and Choice Properties Limited Partnership’s potential guarantee of approximately $450 million of CREIT’s Senior Unsecured Debentures (previously rated BBB with a Stable trend) should the Transaction close according to terms substantially similar to those proposed. In such case, CREIT’s debentures would likely rank pari passu with CP REIT’s existing senior unsecured debentures, which are currently rated BBB with a Stable trend.

As specific information becomes available, DBRS will aim to resolve the Under Review status by the closing of the Transaction anticipated in April–May 2018.

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

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

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 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.