...March 22, 2023 - A rapid rise in interest rates has led to an industry-wide decline in commercial real estate (CRE) capital markets and leasing activities, resulting in lower transactional revenues for Avison Young (Canada) Inc. - We think Avison Young's liquidity will be pressured in 2023 because of lower capital markets and leasing revenues, as well as higher debt servicing costs, which we expect will lead to EBITDA cash interest coverage below 1.0x. - The company's proposed two new funding facilities with a total capacity of C$50 million, as well as the proposed temporary covenant waiver on its existing revolving credit facility, will reduce the immediate liquidity risk. However, we believe that Avison Young is dependent on favorable economic, business, and financial conditions, including significant revenue growth and more accommodating CRE markets, which may be difficult to achieve in 2023. - As a result, we lowered our issuer credit rating on Avison Young (Canada) to '###+' from 'B-'....
