Morningstar DBRS assigns first loss rating to RioTrin, RioCan mortgage loan in Calgary

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Ciaran Ryan

02.06.2026

Morningstar DBRS assigns first loss rating to RioTrin, RioCan mortgage loan in Calgary — RioCan Calgary loan rated

A mortgage backed by the RioCan Signal Hill Centre in Calgary has received a first loss rating of A (of) with a Stable trend from Morningstar DBRS. The loan matures on December 1, 2033 and is tied to a regional shopping centre that is 97.8% leased as of January 1, 2026.

Highlights

Morningstar DBRS assigned a first loss rating to a 5.53% mortgage loan to RioTrin Properties Inc. and RioCan Holdings Inc. secured by the 481,797-square-foot RioCan Signal Hill Centre in Calgary.
The rating reflects a 72.0% loan-to-value ratio, $134.5 million property value, 1.6x debt service coverage, 10.8% debt yield, and a $96.7 million balance as of May 2026.
Elevated lease rollover risk exists with 69% of leases expiring by end of 2029, offset by full recourse to RioCan REIT (rated BBB Stable) and a $1.3 million allocation for tenant improvements.

Calgary retail asset backs rated mortgage

As reported by Morningstar DBRS, the 5.53% mortgage loan was made to RioTrin Properties Inc. and RioCan Holdings Inc. and is secured by the fee-simple interest in the 481,797-square-foot RioCan Signal Hill Centre. The property sits on a 50.7-acre site at 5478 - 5696 Signal Hill Centre SW, about 12 kilometers southwest of downtown Calgary, in a densely developed residential area with adjacent retail and access to Richmond Road SW and Sarcee Trail SW.

The shopping centre was constructed in 1999 and is anchored by Lowes, with junior anchors including Winners, Staples, Marshalls, and Michaels. Morningstar DBRS says the tenant base also includes nationally recognized restaurants, banks, and outparcels, supporting steady occupancy and traffic.

Credit metrics and refinancing risks

The rating agency says the first loss rating reflects a 72.0% loan-to-value ratio based on its concluded property value of $134.5 million, as well as stable and predictable cash flows. It also cites a debt service coverage ratio of 1.6 times, a debt yield of 10.8%, and an amortizing structure with a current balance of $96.7 million as of May 2026.

Morningstar DBRS also points to supportive qualitative adjustments tied to cash flow volatility, property quality, and market fundamentals, along with the full recourse and full guarantee of RioCan Real Estate Investment Trust, which it rates BBB with a Stable trend. At the same time, it notes elevated lease rollover risk because 69% of leases are scheduled to expire by the end of 2029, and it includes a $1.3 million allocation for tenant improvement and leasing commission expenses to reflect possible re-leasing costs.

The agency says no Environmental, Social, or Governance factors have a significant or relevant effect on the credit analysis. It adds that all credit ratings remain subject to surveillance and could be upgraded, downgraded, placed under review, confirmed, or discontinued.

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