DBRS Morningstar Assigns AA (low) Rating With a Negative Trend to OMERS Realty Corporation’s Series 13 Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of AA (low) with a Negative trend to OMERS Realty Corporation’s (ORC or the Company) $600 million 5.381% Series 13 Senior Unsecured Debentures, due November 14, 2028 (the Series 13 Debentures). The assigned rating is based on the rating of an already-outstanding series of the above-mentioned debt instrument.

The Series 13 Debentures are direct unsecured obligations of the Company and rank pari passu with all other present and future unsecured and unsubordinated indebtedness of the Company. The Series 13 Debentures are not guaranteed by OMERS Administration Corporation (rated AAA with a Stable trend by DBRS Morningstar). DBRS Morningstar understands that the Series 13 Debentures are being issued as “Green Bonds” under the Green Financing Framework established by Oxford Properties Group and posted to their website in October 2022. ORC intends to use an amount equal to the net proceeds to fund the financing and/or refinancing of Eligible Green Projects (as defined in the Green Financing Framework). Prior to the full allocation of the net proceeds to Eligible Green Projects, ORC may temporarily use the net proceeds for the repayment of the ORC’s debt (unrelated to fossil fuel investments). The net proceeds will be fully allocated to Eligible Green Projects within two years from the date of issuance.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

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/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (May 17, 2022).

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

The principal methodologies are Rating Entities in the Real Estate Industry (April 20, 2022; https://www.dbrsmorningstar.com/research/395563) and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (April 4, 2022; https://www.dbrsmorningstar.com/research/394683), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223/interplay-of-global-corporate-finance-rating-methodologies-when-analyzing-corporate-finance-transactions.

The conditions that lead to the assignment of a Negative or Positive trend are generally 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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