DBRS Morningstar Assigns Rating of BBB, Stable, to Sienna Senior Living Inc.’s Series B Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of BBB with a Stable trend to Sienna Senior Living Inc.’s (Sienna) $175 million Series B Senior Unsecured Debentures (Series B Debentures) due February 27, 2026. The rating on the Series B Debentures is based upon the rating on the already-outstanding series of Senior Unsecured Debentures.

The Series B Debentures are direct unsecured obligations of Sienna, and rank equally and rateably with all other present and future unsecured and unsubordinated indebtedness of Sienna. DBRS Morningstar understands that Sienna will use the net proceeds of the offering, together with other sources of liquidity, to repay all outstanding Series B Senior Secured Debentures of Sienna’s wholly owned subsidiary, Leisureworld Senior Care LP (rated A (low) with a Stable trend by DBRS Morningstar). As a result, DBRS Morningstar discontinued the rating on Leisureworld’s Series B Senior Secured Debentures (see DBRS Morningstar’s press release on Leisureworld dated October 2, 2020).

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

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

The principal methodologies are Rating Companies in the Canadian Long-Term Care Industry (September 9, 2020), Rating Entities in the Real Estate Industry (June 4, 2020), and DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 25, 2019), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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