Morningstar DBRS Assigns Credit Rating of BB (high), Negative, to Cominar Real Estate Investment Trust's Series 13 Senior Unsecured Debentures

DBRS Limited (Morningstar DBRS) assigned a rating of BB (high) with a Negative trend to the 7.80% CAD $150 million Series 13 Senior Unsecured Debentures due December 18, 2027 (the Debentures) issued by Cominar Real Estate Investment Trust (Cominar or the Trust). The credit rating assigned to this debt instrument is based on the ratings of already-outstanding debt series of the above-mentioned debt instrument.

Morningstar DBRS understands that the Debentures will be direct senior unsecured obligations of the REIT and will rank equally and rateably with one another and with all other unsecured and unsubordinated Indebtedness of the REIT, except to the extent prescribed by law. The Debentures will be unconditionally guaranteed, jointly and severally (solidarily), by certain of the REIT's Subsidiaries (collectively, the "Guarantors"), and each Subsidiary of the REIT that becomes a guarantor under the Thirteenth Supplemental Indenture in each case until such Person is released, from its obligations under its Guarantee of the Debentures.

Morningstar DBRS acknowledges that each Guarantee will rank pari passu with all other existing and future senior unsecured Indebtedness of such Guarantor and senior in right of payment to any future subordinated Indebtedness of such Guarantor. Each Guarantee will be effectively subordinated to all secured Indebtedness of the relevant Guarantor to the extent of the value of the assets securing such secured Indebtedness. Morningstar DBRS understands that the net proceeds from the offering will be used for the repayment of the $149.1 million aggregate principal amount of Series 12 Senior Unsecured Debentures due May 5, 2025.

ENVIRONMENTAL, SOCIAL, AND 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 Factors in Credit Ratings (August 13, 2024) at https://dbrs.morningstar.com/research/437781.

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

(B) Weighting of FRA Factors
In the analysis of Cominar, 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 Cominar, the BRA and the FRA carry approximately equal weight.

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

Morningstar DBRS credit ratings may use one or more sections of the Morningstar DBRS Global Corporate Criteria (April 15, 2024), https://dbrs.morningstar.com/research/431186 which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

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 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 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 https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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