DBRS Finalizes Provisional Commercial Paper Rating of bcIMC Realty Corporation at R-1 (middle)

DBRS Limited (DBRS) finalized its Commercial Paper (CP) rating of R-1 (middle) with a Stable trend on bcIMC Realty Corporation’s (bcIMC Realty or the Company; rated AA (low) with a Stable trend by DBRS) Short-Term Promissory Notes (the Notes), up to $1,000 million.

The rating is based on the Company’s adequate liquidity available to manage the refinancing risk associated with the CP program. The CP program is fully backstopped by bcIMC Realty’s committed senior unsecured credit facility with sufficient same-day availability (the Credit Facility). The last rating action on bcIMC Realty’s long-term rating was on May 4, 2018. More recently, bcIMC Realty’s leverage and coverage metrics showed some improvement based on DBRS’s review of year-to-date draft unaudited financial statements at September 30, 2018. Improvements were largely driven by increasing EBITDA, lower debt levels as bcIMC Realty’s parent continues to inject cash equity and resulting lower interest expense.

The Notes are unsecured and rank equally with other unsubordinated and unsecured obligations of the Company, subject to certain exceptions that may exist under applicable law. The Notes are not guaranteed by the shareholders of bcIMC Realty or any other entity. DBRS understands that the net proceeds from the offering will be used for general corporate purposes.

DBRS reviewed documents related to bcIMC Realty’s CP offering, including the CP information memorandum and supplemental documents, the CP program policy as well as the credit facility and amendment thereof. Based on its review, DBRS believes that these documents are consistent with its “DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers,” including provisions related to the liquidity backstop. DBRS understands that bcIMC Realty will maintain a 100% liquidity backstop for its $1,000 million CP program via its $1,500 million Credit Facility maturing in July 2021.

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

The principal methodologies are Rating Entities in the Real Estate Industry, DBRS Criteria: Guarantees and Other Forms of Support and DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers, which can be found on dbrs.com under Methodologies & Criteria.

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.