DBRS Morningstar Confirms Rating on Mortgage Loan Made to South Block (Concert) Ltd. and Jawl Precinct Lands Corporation – 525 Superior Street

DBRS Limited (DBRS Morningstar) confirmed the rating on the following mortgage loan made to South Block (Concert) Ltd. and Jawl Precinct Lands Corporation – 525 Superior Street (collectively, the Borrowers) by a major Canadian financial institution:

-- Mortgage Loan No. 814650.1 at AA (high)

The trend is Stable.

The rating confirmation reflects the overall stable performance of the transaction, which remains in line with DBRS Morningstar’s expectations.

The loan is secured by a 2017 vintage office building at 525 Superior Street in Victoria, British Columbia. DBRS Morningstar’s current rating of the mortgage loan reflects the rating of the credit tenant, the Government of the Province of British Columbia (the Tenant) (rated AA (high) with a Stable trend by DBRS Morningstar as of June 2021), which occupies 99% of the total net rentable area and has a lease that is co-terminous with the fully amortizing loan term with no rights to early termination. The net cash flow from the Tenant’s lease is sufficient to cover the financial obligations of the Borrowers with respect to the mortgage loan. Any change to the DBRS Morningstar rating of the Tenant during the loan term is expected to have an effect on the rating of the mortgage loan.

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.

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 dollars unless otherwise noted.

The principal methodology is the North American CMBS Surveillance Methodology (March 4, 2022), which can be found on dbrsmorningstar.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 Morningstar Global Structured Finance Related Methodologies document, which can be found on dbrsmorningstar.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.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

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.

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.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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