That doesn't look good. Huge debt overhang Cominar's debt ratio increased from 50% in 2012, climaxed at 56.1% in 2014, and then fell to 53.9% by year-end 2015. Due to the threat of a credit-rating downgrade early in 2016, management scrambled to make some quick repayments to reduce the debt. The credit ratio then improved to 51.8% by September 30, 2016. However, management reduced debt by selling more units and reinstating the dilutive dividend-reinvestment plan (DRIP) to raise more cash capital with shares selling well below net book value, and they left the huge monthly payouts untouched. Threat of increased interest rates Cominar's 2015 annual report outlined that much of the REIT's debt payable bore interest at fixed rates. A 25-basis-point increase in the average interest rate on variable interest debts, all else equal, would have resulted in a $2.1 million increase in net income.