DBRS Morningstar Assigns Rating of BBB, Stable, to RioCan Real Estate Investment Trust’s Series AI Senior Unsecured Debentures

DBRS, Inc. (DBRS Morningstar) assigned a rating of BBB with a Stable trend to RioCan Real Estate Investment Trust’s (RioCan or the Trust) $300 million 6.488% Series AI Senior Unsecured Debentures due September 29, 2026 (the Series AI Debentures). The assigned rating is based upon the rating of an already-outstanding series of the Senior Unsecured Debentures.

The Series AI Debentures are direct senior unsecured obligations of RioCan and rank equally and rateably with all other present and future unsecured and unsubordinated indebtedness of the Trust. DBRS Morningstar understands that the net proceeds from the offering will be used to repay existing indebtedness at or prior to maturity and the balance of the net proceeds, if any, will be used for general business purposes.

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/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (July 4, 2023).

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

The principal methodology applicable to the rating is Global Methodology for Rating Entities in the Real Estate Industry (April 11, 2023; https://www.dbrsmorningstar.com/research/412477).

The rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

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.

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at [email protected].

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