DBRS Confirms Lime Ridge Mall First Mortgage Bonds at A (high) (sf)

DBRS Limited (DBRS) confirmed the $181 million 5.317% First Mortgage Bonds, due 6/1/2020 (the Bonds) issued by Ontrea Inc. at A (high) (sf) with a Stable trend. The Bonds, which have interest-only payment, are secured by Lime Ridge Mall (the Property). Recourse is limited to the Property only.

The current rating reflects the credit quality of the Bonds as supported by the results of DBRS’s analytics, which indicate a DBRS Exit Debt Yield of 12.8% based on DBRS’s stressed net cash flow, which was 11.0% lower than the reported YE2017 net operating income. Based on DBRS’s implied cap rate, the interest-only Bonds represent the same current and maturity loan-to-value ratio of 60.8%.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for this transaction.

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

The principal methodology is North American Single-Asset/Single-Borrower Methodology, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. 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 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@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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