DBRS Morningstar Assigns Rating of BBB, Stable, to Granite REIT Holdings Limited Partnership’s $500 Million 2.378% Series 5 Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of BBB with a Stable trend to Granite REIT Holdings Limited Partnership’s (Granite) $500 million 2.378% Series 5 Senior Unsecured Debentures due December 18, 2030 (the Series 5 Debentures). The assigned rating is based on the rating of the already-outstanding series of Senior Unsecured Debentures.

The Series 5 Debentures are direct senior unsecured obligations of Granite and rank equally and rateably in right of payment with one another and with all other unsecured and unsubordinated indebtedness of Granite, senior in right of payment to any future indebtedness of Granite that is expressly subordinated to the Series 5 Debentures, effectively junior to any existing and future indebtedness of Granite that is secured, and structurally junior to any existing and future indebtedness and other liabilities of any Granite subsidiary that is not a guarantor.

The Series 5 Debentures are fully and unconditionally guaranteed, on a joint and several basis, by Granite Real Estate Investment Trust and Granite REIT Inc. and by any Granite subsidiary that becomes a guarantor in the future under the Credit Agreement.

DBRS Morningstar understands that Granite will use the net proceeds from the offering to refinance existing debt, including the redemption of the Series 2 Senior Unsecured Debentures due July 5, 2021, and for general corporate purposes.

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 Entities in the Real Estate Industry (June 4, 2020), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 2, 2020), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020), 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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