Morningstar DBRS Assigns Rating of AA (low) to AIMCo Realty Investors LP’s $450 Million 4.640% Series 6 Senior Unsecured Debentures and $450 Million 4.970% Series 7 Senior Unsecured Debentures

DBRS Limited (Morningstar DBRS) assigned a rating of AA (low) with a Stable trend to AIMCo Realty Investors LP’s (AIMCo Realty or the Company) $450 million 4.640% Series 6 Senior Unsecured Debentures, due February 15, 2030 (the Series 6 Debentures) and $450 million 4.970% Series 7 Senior Unsecured Debentures, due May 23, 2034 (the Series 7 Debentures). The assigned rating is based upon the rating on the already-outstanding series of Senior Unsecured Debentures.

The Series 6 and Series 7 Debentures are direct senior unsecured obligations of AIMCo Realty and rank equally and rateably with all other present and future unsecured and unsubordinated indebtedness of the Company. Morningstar DBRS understands that AIMCo Realty intends to use an amount equal to the net proceeds of the offering to fund the financing and/or refinancing of eligible green projects. Prior to allocation of the net proceeds of the offering to eligible green projects, AIMCo Realty may use the net proceeds of the offering to redeem or repay on maturity the Series 1 Notes; to repay existing indebtedness, including indebtedness under the non-revolving credit facility, the second non-revolving credit facility, and certain secured construction indebtedness; and for general corporate 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 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 AIMCo Realty Investors LP, the BRA factors were considered in the order of importance contemplated in the methodology.

(B) Weighting of FRA Factors
In the analysis of AIMCo Realty Investors LP, 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 AIMCo Realty Investors LP, the BRA carried more 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 15, 2024), https://dbrs.morningstar.com/research/431170

The following methodology has also been applied:
-- Morningstar DBRS Global Corporate Criteria (April 15, 2024), https://dbrs.morningstar.com/research/431186/

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/431153.

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 info-DBRS@morningstar.com.

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 info-DBRS@morningstar.com.