DBRS Morningstar Assigns Rating of BBB (high), Stable, to Granite REIT Holdings Limited Partnership’s $500 Million 2.194% Series 6 Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (high) with a Stable trend to Granite REIT Holdings Limited Partnership’s (Granite) $500 million 2.194% Series 6 Senior Unsecured Debentures due August 30, 2028 (the Series 6 Debentures). The assigned rating is based on the rating of the already-outstanding series of Senior Unsecured Debentures.

The Series 6 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 6 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 6 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.

The Series 6 Debentures are being issued as Green Bonds under the Granite Green Bond Framework. DBRS Morningstar understands that Granite intends to use the net proceeds from the offering to finance or refinance, in whole or in part, expenditures associated with Eligible Green Projects as described in the Granite Green Bond Framework. Although Granite intends to use an amount equal to the net proceeds of this offering as described herein, it will not be an Event of Default under the Series 6 Debentures Indenture if Granite fails to comply with such obligations.

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/373262.

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

The principal methodologies are Rating Entities in the Real Estate Industry (April 23, 2021; https://www.dbrsmorningstar.com/research/377358) and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (May 31, 2021; https://www.dbrsmorningstar.com/research/379424), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

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.

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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