Morningstar DBRS Confirms The MaRS Development Trust's Senior Secured Bonds at AA, Stable Trend

DBRS Limited (Morningstar DBRS) confirmed its credit rating on the Senior Secured Bonds (the Bonds) issued by The MaRS Development Trust (MaRS Trust) at AA with a Stable trend.

KEY CREDIT RATING CONSIDERATIONS
The confirmation of the credit rating and trend follows Morningstar DBRS' assigning an Issuer Rating of AA with a Stable trend to the University Health Network (UHN). (See the Morningstar DBRS press release titled "Morningstar DBRS Assigns Issuer Rating of AA to University Health Network, Stable Trend," published on July 18, 2025.) As UHN is an investment-grade credit with the level of its secured debt relative to its total debt being less than 10% and no intention for this ratio to exceed 10%, MaRS Trust's credit rating is equalized with it. This hierarchy principle is contained in Morningstar DBRS' Credit Ratings Global Policy. MaRS Trust's credit rating also reflects the following factors: (1) the credit strength of UHN, which is responsible for servicing the Bonds through a credit tenant lease; and (2) a comprehensive security package that includes a charge on project assets, the UHN lease, various reserve accounts, and insurance policies.

MaRS Discovery District used the $100 million proceeds from the MaRS Trust bond issue to finance the acquisition of lands and the construction of the 400,000-square-foot Princess Margaret Cancer Research Tower (previously the Toronto Medical Discovery Tower; the Project). Construction was completed in August 2005, with costs coming in slightly below budget. The Project has been leased to UHN for a period of 30 years, which corresponds to the term of the Bonds. During this time, UHN will provide rent payments sufficient to service the Bonds as well as cover all operating and maintenance costs.

The Project, along with other existing buildings on adjoining land, is part of an overall effort by MaRS Discovery District to establish a place where the academic, research, and business sectors from Canada's science and technology industry can come together to help stimulate innovation, entrepreneurship, and the creation of successful global businesses.

CREDIT RATING DRIVERS
Given that MaRS Trust's credit profile is linked to that of UHN, if Morningstar DBRS were to revise its credit rating on the latter, it would apply an equal revision to MaRS Trust's credit rating.

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 (May 16, 2025) at https://dbrs.morningstar.com/research/454196.

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

Morningstar DBRS applied the following principal methodology:
-- Morningstar DBRS Global Corporate Criteria (February 3, 2025), https://dbrs.morningstar.com/research/447186

The following methodology has also been applied:
-- Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025), https://dbrs.morningstar.com/research/454196

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.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

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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