DBRS Morningstar Confirms Rating on Mortgage Loan to Albert & Lyon Equities Inc., Albert & Lyon Properties LP and Canderel CSQ Ottawa LP – Constitution Square at A (low), Stable Trend

DBRS Limited (DBRS Morningstar) confirmed the rating of A (low) with Stable trend on the Mortgage Loan (the Loan) made to Albert & Lyon Equities Inc., Albert & Lyon Properties LP and Canderel CSQ Ottawa LP (collectively, the Borrowers) by a major Canadian financial institution (the Lender).

The Loan is secured by a Class AA office and retail complex located in a major Canadian urban market. DBRS Morningstar’s current rating reflects the credit quality of the Loan as supported by a DBRS Morningstar Exit Debt Yield of 11.3% based on DBRS Morningstar’s net cash flow analysis, which was 17.6% lower than the reported 2018 net operating income. Based on DBRS Morningstar’s cap rate of 7.25%, the Loan represents current and maturity DBRS Morningstar loan-to-value ratios of 100.5% and 64.6%, respectively.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS Morningstar.

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

The principal methodology is North American CMBS Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document, which can be found on www.dbrs.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

This rating was initiated at the request of the Lender.

The rated entity or its related entities did not 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.

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

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