DBRS Assigns BBB (low) Rating with Stable Trend to Crombie REIT’s Re-opening of the Series B Senior Unsecured Notes

DBRS Limited (DBRS) assigned a rating of BBB (low) with a Stable trend to the re-opening of Crombie Real Estate Investment Trust’s (Crombie REIT or the Trust) 3.962% Series B Senior Unsecured Notes due June 1, 2021 (the Series B Notes), for $75 million. The rating being assigned is based on the rating of the already outstanding series of the above-mentioned debt instrument.

The Series B Notes are unconditionally guaranteed, on an unsecured basis, by Crombie Limited Partnership, Crombie Developments Limited, Crombie General Partner Limited, Crombie Management Limited, Crombie Property Holdings II Limited, Crombie Properties II Partnership, Crombie Property Holdings Limited, Snowcat Property Holdings Limited and Crombie Davie Street Limited Partnership. The Series B Notes are direct senior unsecured obligations of Crombie REIT and rank equally and rateably in right of payment with all other unsecured and unsubordinated indebtedness of Crombie REIT.

DBRS understands that the net proceeds from the offering will be used to repay short-term indebtedness and for general purposes of the Trust. An aggregate of $250 million of Series B Notes are outstanding after giving effect to this offering.

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

The principal methodologies are Rating Entities in the Real Estate Industry (April 2018), DBRS Criteria: Guarantees and Other Forms of Support (January 2018) and DBRS Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (December 2017), 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 in connection with this rating action.

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