Summary: Avison Young (Canada) Inc.

Small but fast-growing player in global commercial real estate services Rapid growth through an active merger and acquisition strategy, with inherent financial and operational risks More transaction-based revenues than peers, that we view as less stable Net debt to adjusted EBITDA likely to exceed 8x following preferred stock issuance, and then decrease as proceeds are deployed Continued reported operating losses and weaker-than-peer EBITDA margins at 6.7% High share of variable expenses provide some downside protection during adverse market conditions The stable outlook on Avison Young (Canada) Inc. balances the additional financial flexibility provided by the new capital and lack of near-term maturities against our expectations for leverage to rise materially in the short run. S&P Global Ratings expects Avison Young

...Business Risk: Fair Financial Risk: Highly leveraged + Small but fast-growing player in global commercial real estate services + Rapid growth through an active merger and acquisition strategy, with inherent financial and operational risks + More transaction-based revenues than peers, that we view as less stable + Net debt to adjusted EBITDA likely to exceed 8x following preferred stock issuance, and then decrease as proceeds are deployed + Continued reported operating losses and weaker-than-peer EBITDA margins at 6.7% + High share of variable expenses provide some downside protection during adverse market conditions...

Summary