DBRS Confirms Centennial Place FMB Series A at AA (low) (sf) with a Stable Trend

DBRS Limited (DBRS) confirmed the AA (low) rating of the Centennial Place 3.666% Senior Series A Secured Bonds due 2022 (the Series A Bonds) issued by OMERS Realty Corporation (rated AA (low) with a Stable trend by DBRS), 9856889 Canada Inc. and CPP Investment Board Real Estate Holdings Inc. The trend is Stable. Recourse is limited to the property only.

The current rating reflects the credit quality of the Series A Bonds, supported by the results of DBRS analytics, which indicate a DBRS Exit Debt Yield of 20.0% based on DBRS’s stressed net cash flow, which was 19.7% lower than the reported YE2018 net operating income. Based on DBRS’s cap rate of 7.75%, the Series A Bonds represent current and maturity loan-to-value ratios of 44.2% and 38.7%, 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.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for this transaction.

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

The principal methodology is North American CMBS Surveillance 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 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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

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