This analysis delves into the financial standing of City Office REIT and its associated preferred stock, providing an independent credit rating. The evaluation considers the company's asset strength and debt levels, which are deemed acceptable. However, concerns regarding its liquidity position and the difficult market conditions it operates within significantly impact its creditworthiness, leading to a B3 rating.

City Office REIT, established in 2013 and headquartered in Vancouver, Canada, primarily focuses on the real estate sector. The assessment highlights that the company's asset foundation and leverage ratios are at a suitable level. Nonetheless, persistent issues with its available cash and the current demanding business environment are critical factors that restrict its credit rating to B3, indicating a notable level of risk for investors.

The preferred stock, specifically CIO.PR.A, receives a Caa2 rating. This lower classification reflects the heightened risk associated with this type of security, which offers minimal protective measures for investors in adverse scenarios. Despite the appealing returns offered by CIO's preferred stock, the combination of its low credit rating and inadequate coverage of fixed obligations renders the investment unattractive from a risk-reward standpoint.

Considering the detailed financial indicators and the prevailing market conditions, the analysis concludes that investing in City Office REIT's preferred stock is not advisable at this juncture. The risks outweigh the potential benefits, leading to a neutral investment stance. This perspective is reinforced by the company's struggle with liquidity and the broader challenges facing the real estate market.

In summary, while City Office REIT maintains a decent asset base, its constrained liquidity and an arduous operational landscape significantly impact its financial health. The preferred stock, CIO.PR.A, presents a high-risk proposition with insufficient safeguards. Consequently, despite seemingly high yields, the overall outlook suggests that this investment does not offer a compelling risk-adjusted return.