DBRS Morningstar Assigns Ratings of BBB, Stable, to SmartCentres Real Estate Investment Trust’s Series Z Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of BBB with a Stable trend to SmartCentres Real Estate Investment Trust’s (SmartCentres or the Trust) $300 million 5.354% Series Z Senior Unsecured Debentures, due May 29, 2028 (the Series Z Debentures). The assigned rating is based on the rating of an already-outstanding series of the above-mentioned debt instrument.

The Series Z Debentures are direct unsecured obligations of SmartCentres and rank equally and rateably with all other present and future unsecured and unsubordinated indebtedness of the Trust. The Series Z Debentures are guaranteed by the wholly owned material subsidiaries of SmartCentres.

DBRS Morningstar understands that SmartCentres intends to use the net proceeds of the offering to refinance existing debt, including the repayment of its $200 million Series I Senior Unsecured Debentures due 2023 and for general trust purposes.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

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/396929 (May 17, 2022).

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

DBRS Morningstar applied the following principal methodologies:
-- Global Methodology for Rating Entities in the Real Estate Industry (April 11, 2023) https://www.dbrsmorningstar.com/research/412477
-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023) https://www.dbrsmorningstar.com/research/411694

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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