S&P Global Ratings affirmed its BBB long-term issuer credit rating on Choice Properties Real Estate Investment Trust.
The outlook is stable.
The affirmation follows an announced plan by Canadian retail giant Loblaw Cos. Ltd. to spin out its 61.6% stake in the REIT as part of a reorganization plan that will result in George Weston Ltd. owning a 65.4% stake in Choice Properties. Loblaw parent George Weston owns a 3.8% direct stake in the REIT.
The rating agency said the affirmation is based on its assessment that the REIT's strategically important group status to George Weston will remain unchanged following the transaction. S&P's business risk profile on the REIT is satisfactory, reflecting its position as the largest diversified REIT in Canada.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings document referred to in this news brief can be found here.