DBRS Morningstar Assigns Provisional Rating of BBB With a Stable Trend to Primaris REIT’s Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a provisional rating of BBB with a Stable trend to Primaris Real Estate Investment Trust’s (Primaris or the REIT) Senior Unsecured Debentures, which includes the inaugural $150 million Series A Senior Unsecured Debentures, due March 30, 2027 (the Series A Debentures), and $200 million Series B Senior Unsecured Debentures, due March 30, 2025 (together with the Series A Debentures, the Debentures). The assignment of this provisional rating follows DBRS Morningstar assigning an Issuer Rating of BBB with a Stable trend to Primaris on March 4, 2022. The REIT’s contemplated issuance of the Debentures is consistent with DBRS Morningstar’s expectations at that time. For greater clarity, since assigning the Issuer Rating, DBRS Morningstar believes there have not been any material changes to the REIT’s credit risk profile.

The Debentures will be direct senior unsecured obligations of the REIT and will rank equally and rateably with Primaris’ other senior unsecured debt securities as well as all other unsecured and unsubordinated indebtedness, except to the extent prescribed by law. The Debentures will be guaranteed by each subsidiary of Primaris that is a guarantor under the REIT’s senior credit facility, which initially will be PRR Trust, NPS Retail Properties LP, New Primaris Master Limited Partnership, and Circle Retail Properties LP (the Guarantee). DBRS Morningstar reviewed the Guarantee for consistency with “DBRS Morningstar Criteria: Guarantees and Other Forms of Support.”

The net proceeds from the offering will be used to repay existing indebtedness and for general trust 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).

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.

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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