http://www.dbrs.com/research/230388/broo...

>>DBRS has today confirmed the Issuer Rating of Brookfield Properties Corporation (Brookfield or the Company) at BBB (high) and its Cumulative Redeemable Preferred Shares, Class AAA rating at Pfd-3 (high); the trends are Stable. The rating confirmations take into consideration that Brookfield significantly improved its financial flexibility and liquidity position with the proceeds from a $1 billion common equity and $250 million preferred share issuance in Q3 2009. Financial flexibility is also enhanced by its low payout ratio and free cash flow position (before non-cash changes in working capital).

DBRS believes Brookfield will continue to have strong access to capital and the Company now has adequate liquidity to fund more modest amounts of near-term debt maturities and capital spending (DBRS estimates $75 million of planned capital expenditures in 2010) relative to those levels over the last couple of years. DBRS notes that following the completion of the Bay Adelaide Centre in Toronto, Brookfield currently has no active development projects underway. DBRS also believes that Brookfield’s improved financial flexibility has alleviated some of our concerns with respect to the Company’s aggressive credit metrics and large mezzanine debt maturity due in 2011 related to the Trizec acquisition in 2006 (Brookfield’s share is $1.6 billion). Brookfield will likely also use available funds to participate in the recently announced $4 billion investor consortium formed by the Company and Brookfield Asset Management Inc. (BAM), which is expected to invest in global real estate restructuring opportunities. Brookfield and BAM plan to invest $1 billion, with the Company having an option to fund opportunities in the office segment up to $500 million.<<