DBRS Limited (DBRS Morningstar) assigned a rating of BBB (high) with a Stable trend to Choice Properties Real Estate Investment Trust’s (Choice Properties or the Trust) $550 million 5.400% Series S Senior Unsecured Debentures, due March 1, 2033 (the Series S Debentures). The assigned rating is based on the rating on the already-outstanding series of Senior Unsecured Debentures.
The Series S Debentures are direct senior unsecured obligations of Choice Properties and rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust. The Series S Debentures are guaranteed by Choice Properties Limited Partnership (rated BBB (high) with a Stable trend by DBRS Morningstar), Choice Properties GP Inc., and any other wholly owned subsidiaries of Choice Properties.
DBRS Morningstar understands that Choice Properties intends to use the net proceeds of the offering (1) to repay upon maturity the Trust’s outstanding $250 million 3.196% Series G Senior Unsecured Debentures due March 7, 2023; (2) to repay all or a portion of the balance drawn on the Trust’s credit facility; and (3) for general business 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 DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (May 17, 2022).
All figures are in Canadian dollars unless otherwise noted.
The principal methodologies applicable to the rating are Rating Entities in the Real Estate Industry (April 20, 2022; https://www.dbrsmorningstar.com/research/395563) and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (April 4, 2022; https://www.dbrsmorningstar.com/research/394683).
The rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.
A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223/interplay-of-global-corporate-finance-rating-methodologies-when-analyzing-corporate-finance-transactions.
The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.
Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at firstname.lastname@example.org.
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