DBRS Downgrades H&R REIT’s Stability Rating to STA-3 (middle) and Removes It from Under Review – Negative

DBRS has today downgraded the stability rating of H&R Real Estate Investment Trust (H&R or the Trust) to STA-3 (middle) from STA-3 (high) and has removed the stability rating from Under Review with Negative Implications, where it was placed on November 18, 2008.

The rating change reflects the reduction in the level of H&R’s annual distribution to $0.72 per stapled unit from $1.44 per stapled unit as part of the financing arrangements for the Trust’s operations, including its significant development project, the Bow, a two-million-square-foot, Class AAA office tower located in downtown Calgary. DBRS notes that H&R has secured financing for the Bow, which has resolved our previous funding concerns and has resulted in only a one-notch downgrade of the Trust’s stability rating.

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

The applicable methodology is Rating Real Estate, which can be found on our website under Methodologies.

This is a Corporate rating.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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