Ivanhoé Cambridge II Inc.: Presale Report

DBRS Limited (DBRS) assigned a provisional Senior Unsecured Debenture rating of AA (low) with a Stable trend to Ivanhoé Cambridge II Inc. (IC II or the Company). As of June 15, 2018, IC II had no Senior Unsecured Debentures outstanding; if IC II were to issue Senior Unsecured Debentures in the future, DBRS expects the issuance to be on terms and conditions consistent with market practice and satisfactory to DBRS. The rating takes into consideration IC II’s stand-alone credit risk profile, expected low level of secured debt in its capital structure, DBRS’s view of implicit support by Caisse de dépôt et placement du Québec (CDPQ, rated AAA with a Stable trend by DBRS), and DBRS’s expectation of deterioration in IC II’s debt-to-EBITDA to within the 6.0 times (x) to 7.0x range in the medium to long term.