DBRS Morningstar Assigns Rating of R-1 (low), Stable, to BCI QuadReal Realty’s Inaugural CP Program

DBRS Limited (DBRS Morningstar) assigned a rating of R-1 (low) with a Stable trend to BCI QuadReal Realty’s (BQR or the Fund) inaugural Commercial Paper (CP) program for up to an aggregate maximum of $1.5 billion.

The rating is based on the Fund’s adequate liquidity available to manage the refinancing risk associated with the CP program. The CP program will be fully backstopped by BQR’s $2.0 billion committed senior unsecured credit facility with sufficient same-day availability (the Credit Facility).

The CP will be unsecured and rank equally with other unsubordinated and unsecured obligations of the Fund, subject to certain exceptions that may exist under applicable law. The CP is unconditionally guaranteed by Parkpool, a sister fund also owned by British Columbia Investment Management Corporation, the parent of BQR, and this guarantee ranks pari passu with all present and future unsecured obligations of Parkpool.

DBRS Morningstar understands that the net proceeds from the offerings will be used for general corporate purposes.

It is also DBRS Morningstar’s understanding that with the implementation of this new CP program at BQR, the existing CP program at subsidiary bcIMC Realty Corporation would be wound down in the near term.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

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

The principal methodologies are Rating Entities in the Real Estate Industry (April 23, 2019); DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020); DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 25, 2019); and DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (March 10, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

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 [email protected].

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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