Morningstar DBRS Assigns Credit Rating of BBB, Stable to Dream Summit Industrial LP’s Series E Senior Unsecured Debentures

DBRS Limited (Morningstar DBRS) assigned a credit rating of BBB with a Stable trend to Dream Summit Industrial LP’s (Dream Summit or the Partnership) $250 million 5.111% Series E Senior Unsecured Debentures due February 12, 2029 (the Series E Debentures).

The Series E Debentures are direct senior unsecured obligations of the Partnership and will rank equally and rateably with all other debt securities and with all other unsecured and unsubordinated indebtedness of the Partnership, except to the extent prescribed by law. The Series E Debentures are guaranteed, on an unsecured basis, by those subsidiaries of the Partnership that are guarantors under Dream Summit’s unsecured credit facilities.

Morningstar DBRS understands the net proceeds from the offering will be used by the Partnership to repay existing indebtedness and for general Partnership purposes.

TRANSACTON-SPECIFIC DISCLOSURES
This disclosure includes any financial statement adjustments that deviate materially from those contained in the issuer’s published financial statements.

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 Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (January 23, 2024) at https://dbrs.morningstar.com/research/427030.

BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA)

(A) Weighting of BRA Factors
In the analysis of Dream Summit, the BRA factors were considered in the order of importance contemplated in the methodology.

(B) Weighting of FRA Factors
In the analysis of Dream Summit, the FRA factors were considered in the order of importance contemplated in the methodology.

(C) Weighting of the BRA and the FRA
In the analysis of Dream Summit, the BRA carries greater weight than the FRA.

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

Morningstar DBRS applied the following principal methodology:
-- Global Methodology for Rating Entities in the Real Estate Industry (April 11, 2023) - https://dbrs.morningstar.com/research/412477

The following methodologies have also been applied:
-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023) - https://dbrs.morningstar.com/research/411694
-- DBRS Morningstar Global Criteria: Common Adjustments for Calculating Financial Ratios (November 9, 2023) - https://dbrs.morningstar.com/research/423052

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

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/397223.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

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

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