DBRS Assigns Stable Trend and Confirms Rating on the Mortgage Loan Made to Albert & Lyon Equities Inc., Albert & Lyon Properties LP and Canderel CSQ Ottawa LP – Constitution Square

DBRS Limited (DBRS) assigned a Stable trend to and confirmed the rating of A (low) on the Mortgage Loan (the Loan) made to Albert & Lyon Equities Inc., Albert & Lyon Properties LP and Canderel CSQ Ottawa LP (collectively, the Borrowers) by a major Canadian financial institution (the Lender).

The Loan is secured by a Class AA office and retail complex located in a major Canadian urban market. DBRS’s current rating reflects the credit quality of the Loan as supported by the results of DBRS’s analytics, which indicate a DBRS Exit Debt Yield of 11.4% based on DBRS’s net cash flow, which was 21.6% lower than the annualized 2017 reporting net operating income. Based on DBRS’s cap rate of 7.25%, the Loan represents current and maturity DBRS loan-to-value ratios of 98.7% and 63.4%, respectively.

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

Notes:
The principal methodology is North American CMBS Surveillance, which can be found on dbrs.com under Methodologies & Criteria. 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 not 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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