DBRS Morningstar Assigns Provisional Rating of A (low), Stable, to Canadian Core Real Estate LP’s Series 1 Senior Unsecured Notes

DBRS Limited (DBRS Morningstar) assigned a provisional rating of A (low) with a Stable trend to Canadian Core Real Estate LP’s (CCRE or the Fund) Series 1 Senior Unsecured Notes, due in 2027 (the Series 1 Notes), for up to $250 million. The assignment of this provisional rating follows DBRS Morningstar assigning an Issuer Rating of A (low) with a Stable trend to CCRE on December 17, 2021. The Fund’s contemplated issuance of the Series 1 Notes is consistent with DBRS Morningstar’s expectations at that time. For greater clarity, subsequent to the assignment of the Issuer Rating, DBRS Morningstar is of the view that there have not been any material changes to the credit risk profile of CCRE.

The Series 1 Notes will be direct unsecured obligations of CCRE and will rank equally and rateably with all unsecured and unsubordinated indebtedness of the Fund and junior to all secured indebtedness of the Fund. The Series 1 Notes will be guaranteed, on an unsecured basis, by RBC Canadian Core Real Estate Fund, the sole limited partner of CCRE.

DBRS Morningstar understands that the net proceeds from the offering will be used in connection with the acquisition of two eligible green projects, consistent with CCRE’s green bond framework. The projects are located at 745 Thurlow Street in Vancouver and at Jamieson Place, 308 4th Avenue SW in Calgary.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

The principal methodology is Rating Entities in the Real Estate Industry (April 23, 2021; https://www.dbrsmorningstar.com/research/377358), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

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].

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577