Summary: Teranet Holdings L.P.

Teranet Holdings L.P., through its subsidiaries, exclusively provides electronic property search and registration services in Ontario, as well as land and personal property registration and search activities in Manitoba. It operates under a long-term concession that provides inflation-adjusted contractually set fees. The company has a low-cost structure that allows it to generate above-average EBITDA margins of more than 60%. It has significant concentration in the Ontario real estate market. Any significant deterioration in the housing market could weaken financial performance. Very high debt leverage. We expect the five-year, weighted-average adjusted funds from operations (FFO) interest coverage to remain above 1.75x and FFO-to-debt below 5%. Adequate liquidity. We expect Teranet's sources of liquidity for the next 12 months to exceed uses

...Business Risk: Excellent Financial Risk: Highly leveraged + Teranet Holdings L.P., through its subsidiaries, exclusively provides electronic property search and registration services in Ontario, as well as land and personal property registration and search activities in Manitoba. + It operates under a long-term concession that provides inflation-adjusted contractually set fees. + The company has a low-cost structure that allows it to generate above-average EBITDA margins of more than 60%. + It has significant concentration in the Ontario real estate market. Any significant deterioration in the housing market could weaken financial performance. + Very high debt leverage. We expect the five-year, weighted-average adjusted funds from operations (FFO) interest coverage to remain above 1.75x and FFO-to-debt below 5%. + Adequate liquidity. We expect Teranet's sources of liquidity for the next 12 months to exceed uses by more than 1.2x and sources to exceed uses even if EBITDA declines 15%. +...

Summary