Press Release

DBRS Morningstar Assigns Ratings of BBB (high), Stable, to SmartCentres Real Estate Investment Trust’s Series X and Series Y Senior Unsecured Debentures

Real Estate
December 16, 2020

DBRS Limited (DBRS Morningstar) assigned ratings of BBB (high) with Stable trends to SmartCentres Real Estate Investment Trust’s (SmartCentres or the Trust) $350 million 1.740% Series X Senior Unsecured Debentures, due December 16, 2025 (the Series X Debentures), and $300 million 2.307% Series Y Senior Unsecured Debentures, due December 18, 2028 (the Series Y Debentures; together with the Series X Debentures, the Debentures). The assigned rating is based on the rating of the already-outstanding series of Senior Unsecured Debentures.

The Debentures are direct senior unsecured obligations of SmartCentres and rank equally and rateably with all other present and future unsecured and unsubordinated indebtedness of the Trust. The Debentures are guaranteed by the wholly owned material subsidiaries of SmartCentres. DBRS Morningstar understands that SmartCentres intends to use the net proceeds of the offering to refinance existing debt, including the repayment of its $350 million Series T Senior Unsecured Debentures due 2021 and the redemption of its $150 million Series M Senior Unsecured Debentures due 2022 and its $150 million Series Q Senior Unsecured Debentures due 2022 as well as for general trust purposes.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at:

All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Entities in the Real Estate Industry (June 4, 2020), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 2, 2020), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020), which can be found on under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release:

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.

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