(September 3 – 15:15 ET) – DBRS is confirming its BBB (low) rating on the debentures of Canadian Hotel Income Properties Real Estate Investment Trust. The confirmation follows a deal designed to fend off a hostile bid from Royal Host Real Estate Investment Trust.

Under the transaction, Belkorp Industries Inc.’s BII Acquisition LP has boosted its share of CHIP. Its share rises from 9.8% to 34% thanks to a $100 million investment. DBRS says this deal makes Royal Host’s proposed takeover only “a remote possibility.” It also increases CHIP’s available cash and debt to $120 million.

-IE Staff

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