TORONTO, March 13 /CNW/ - Connor, Clark & Lunn ROC Pref. Corp. (RPQ.PR.A)
announces that its preferred shares have been placed on CreditWatch with
negative implications as of today. The preferred shares are currently rated
P-1 (low) by Standard & Poor's ("S&P"). The move comes as the result of recent
downgrades in the Reference Portfolio as well the removal of Residential
Capital from the portfolio and its replacement with Tribune Corp, which was
lower-rated at the time of the replacement. There have been no defaults in the
reference portfolio since its launch in February 2006.
The rating on the preferred shares reflects the A- rating on the
C$95,040,000 fixed-rate managed credit linked note issued by the Bank of Nova
Scotia (the "CLN"). The return on the CLN, and thus on the preferred shares,
is linked to the credit performance of a portfolio of 127 companies (the
"Reference Portfolio"). The Reference Portfolio is actively managed by Connor,
Clark & Lunn Investment Management Ltd. The CLN benefits from subordination of
2.82% of the reference portfolio as well as a trading reserve account which
would currently buy an additional 0.07% of subordination. As a result, if
there are less than seven defaults in the next three and a quarter years,
investors will continue to receive scheduled quarterly distributions as well
as the full $25 par value at maturity.
CC&L ROC Pref Corp matures in June 2011. The S&P rating speaks to the
product's ability to pay all of its dividends and to return the full $25 par
value at maturity. CC&L remains confident that CC&L ROC Pref Corp. will meet
its investment objectives.
The Preferred Shares are listed for trading on the Toronto Stock Exchange
under the symbol RPQ.PR.A.
For further information:
For further information: please visit www.cclcapitalmarkets.com or
contact: Tim Bradshaw, National Sales Manager, Connor, Clark & Lunn Capital
Markets Inc., (416) 364-3658, firstname.lastname@example.org