DBRS confirms H&R

DBRS said it confirmed the issuer rating of H&R Real Estate Investment Trust at BBB with a stable trend and removed the rating from under review with negative implications, where it was placed on Nov. 18, 2008.

The agency said the confirmation reflects the fact that H&R has secured financing arrangements with respect to its operations, including significant development project the Bow. Among this financing is a C$425 million construction facility, C$200 million of debentures sold to Fairfax Financial Holdings Ltd. and C$150 million in subordinated unsecured convertible debentures.

DBRS believes that these financings have resolved its previous funding concerns of the Bow and have enhanced the trust's financial flexibility position.

At the same time, the agency said it acknowledges the risks in undertaking such a significant development project and the concentration risks associated with the Bow, including potentially greater property and tenant exposure.

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