DBRS Discontinues CREIT’s Senior Unsecured Debt Rating Following Assumption by Choice Properties REIT

DBRS Limited (DBRS) discontinued the Canadian Real Estate Investment Trust’s (CREIT or the Trust) Senior Unsecured Debentures rating as the Senior Unsecured Debentures were assigned to and assumed by Choice Properties Real Estate Investment Trust (CP REIT) on May 4, 2018. CP REIT’s Senior Unsecured Debentures are rated BBB with a Stable trend. This rating action removes the rating from Under Review with Developing Implications, which DBRS placed on February 15, 2018, following CREIT’s announcement of an offer from CP REIT (see DBRS press release dated February 15, 2018) to acquire CREIT’s assets and assume its liabilities.

In connection with CP REIT’s acquisition of CREIT’s assets and assumption of CREIT’s Senior Unsecured Debentures (previously rated BBB with a Stable trend), on May 4, 2018, Choice Properties GP Inc., Choice Properties Limited Partnership (CP LP) and various other subsidiaries of CP LP provided guarantees on the debentures issued by CREIT (collectively, the Guarantees). DBRS has reviewed the Guarantees and is of the view that the Guarantees satisfy the “DBRS Criteria: Guarantees and Other Forms of Support” (January 2018), resulting in the senior unsecured debentures issued by CREIT and assigned to and assumed by CP LP being rated the same as CP LP’s senior unsecured debentures, at BBB with a Stable trend.

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

The principal methodologies are Rating Entities in the Real Estate Industry (April 2018) and DBRS Criteria: Guarantees and Other Forms of Support (January 2018), 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.

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