MISSISSAUGA, ON, May 5, 2016 /CNW/ - Morguard Corporation (TSX: MRC) today announced that Dominion Bond Rating Services (DBRS) confirmed its Issuer Rating of BBB (low) with a Stable trend. The renewed rating remains consistent with the initial DBRS rating in September 2013.
In its report, which reflects the credit quality of debt that ranks below Morguard's property-specific debt, DBRS noted Morguard's core portfolio quality, reliable cash distributions from investment holdings, reasonable coverage ratios and diversification by tenant and asset type. DBRS also commented that it views Morguard's credit risk on a non-consolidated basis, while acknowledging the financial benefits from its holdings in Morguard REIT (TSX: MRT.UN) and Morguard North American Residential REIT (TSX: MRG.UN). "The confirmation from DBRS solidifies an important institutional rating that acknowledges the confidence in our strong and consistent financial performance," said K. Rai Sahi, Chairman and Chief Executive Officer of Morguard Corporation. "The rating provides continued access to new sources of capital to pursue acquisition, investment and development opportunities to support our growth strategy in North America."
The DBRS report pointed to expectations that the strength of Morguard's multi-suite residential segment, conservatively leveraged balance sheet, real estate management and advisory business and EBITDA from property acquisitions and developments will more than offset pressure in the retail segment.
About Morguard Corporation
Morguard Corporation (TSX: MRC) is a major North American real estate and property management company. It has extensive retail, office, industrial, multi–suite residential, and hotel holdings owned directly, or through its investment in Morguard REIT (TSX: MRT.UN) and Morguard North American Residential REIT (TSX: MRG.UN). Morguard also provides real estate management services to institutional and other investors. Morguard's total assets owned and under management is valued at $19.3 billion. Visit www.morguard.com.
SOURCE Morguard Corporation
For further information: Morguard Corporation, K. Rai Sahi, Chief Executive Officer, T 905-281-3800; Paul Miatello, Chief Financial Officer, T 905-281-3800