Morningstar DBRS Assigns Credit Rating of BBB (low) With Stable Trends to Chartwell Retirement Residences' Series E and F Senior Unsecured Debentures

DBRS Limited (Morningstar DBRS) assigned a credit rating of BBB (low) with Stable trends to Chartwell Retirement Residences' (Chartwell or the Trust) CAD 200 million 3.650% Series E Senior Unsecured Debentures, due May 6, 2028 (the Series E Debentures), and CAD 200 million 4.500% Series F Senior Unsecured Debentures, due March 6, 2032 (the Series F Debentures; together with the Series E Debentures, the Debentures).

The Debentures are senior unsecured obligations of Chartwell and rank equally and rateably in right of payment with all other unsecured and unsubordinated indebtedness of the Trust, and the Guarantor. The Debentures are unconditionally guaranteed, on a senior unsecured basis, by Chartwell Master Care LP.

Morningstar DBRS understands that Chartwell intends to use the net proceeds of the offering to repay outstanding indebtedness, including indebtedness under the credit agreements and loan agreements.

The credit rating to the newly issued debt instrument is based on the credit rating of an already-outstanding debt series of the above- mentioned debt instruments. Please refer to the most recent Morningstar DBRS press release on Chartwell dated October 18, 2024 (https://dbrs.morningstar.com/research/441501) for more information, including all relevant disclosures.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) 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 at (August 13, 2024) at https://dbrs.morningstar.com/research/437781.

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

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

B) Weighting of FRA Factors
In the analysis of Chartwell, 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 Chartwell, 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 15, 2024) https://dbrs.morningstar.com/research/431170

Morningstar DBRS credit ratings may use of one or more sections of the Morningstar DBRS Global Corporate Criteria (February 3, 2025) https://dbrs.morningstar.com/research/447186, 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/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 https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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