Morningstar DBRS Assigns Credit Rating of AA (low) with a Negative Trend to OMERS Realty Corporation’s Series 15 Senior Unsecured Debentures

DBRS, Inc. (Morningstar DBRS) assigned a credit rating of AA (low) with a Negative trend to OMERS Realty Corporation’s $450 Million 4.96% Series 15 Senior Unsecured Debentures, due February 10, 2031 (the Series 15 Debentures). The assigned rating is based on the rating of an already-outstanding series of the above-mentioned debt instrument. In addition, the rating incorporates Morningstar DBRS’ review of the Final Term Sheet, dated January 18, 2024; the Eleventh Supplemental Indenture, dated February 08, 2024; the Trust Indenture, dated June 5, 2013; the ORC National Fixed Income Investor Update; and any such other information provided verbally and in writing by ORC and its representatives to Morningstar DBRS as of February 7, 2024.

The Series 15 Debentures are direct unsecured obligations of ORC and rank pari passu with all other present and future unsecured and unsubordinated indebtedness of the Corporation. The Series 15 Debentures are not guaranteed by OMERS Administration Corporation (rated AAA with a Stable trend by Morningstar DBRS).

Morningstar DBRS understands that the net proceeds of the issuance are being used to repay certain indebtedness of ORC.

TRANSACTION-SPECIFIC DISCLOSURES
This disclosure includes any financial statement adjustments that deviate materially from those contained in the issuer’s published financial statements.

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

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (January 23, 2024) at https://dbrs.morningstar.com/research/427030.

BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA)
A) Weighting of BRA Factors
In the analysis of OMERS Realty Corporation, the BRA factors are considered in the order of importance contemplated in the methodology.

B) Weighting of FRA Factors
In the analysis of OMERS Realty Corporation, the FRA factors are considered in the order of importance contemplated in the methodology.

C) Weighting of the BRA and the FRA
In the analysis of OMERS Realty Corporation, the BRA carries greater weight than the FRA.

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

Morningstar DBRS applied the following principal methodology:
Global Methodology for Rating Entities in the Real Estate Industry (April 11, 2023; https://dbrs.morningstar.com/research/412477).

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

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

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

DBRS, Inc.
22 W. Washington St.
Chicago, IL 60602
Tel. +1 312 332 3429