DBRS Morningstar Assigns Rating of AA, Stable, to Ontario Teachers’ Cadillac Fairview Properties Trust’s Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of AA with a Stable trend to Ontario Teachers’ Cadillac Fairview Properties Trust’s (OTCFPT or the Trust) USD 800 million 2.500% Senior Unsecured Debentures, due October 15, 2031 (the Debentures).

The assigned rating is based on the rating of an already-outstanding debt series of the above-mentioned debt instrument.

The Debentures are senior unsecured obligations of OTCFPT and rank equally in right of payment with all other senior unsecured indebtedness of the Trust. The Debentures are senior in right of payment to any of OTCFPT’s existing or future indebtedness that is expressly subordinated to the Debentures; are effectively subordinated to all existing and future indebtedness that is secured, to the extent of the value of the assets securing such indebtedness; and are structurally subordinated to all existing and future indebtedness and other liabilities and any preferred equity of The Cadillac Fairview Corporation Ltd., Ontrea Inc., and CFPT Finance Corp.

DBRS Morningstar understands that the net proceeds from the sale of the Debentures are being used primarily to repay debt that OTCFPT owes to related parties of Ontario Teachers’ Pension Plan Board pursuant to the Intercompany Trust Notes and for general business purposes.

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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