Global Diversified Investment Grade Income Trust II - Recent announcements by Standard and Poor's



    MONTREAL, Sept. 5 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust II ("Global DIGIT II") (TSX: GII.UN) announces that, further to
recent announcements by Standard and Poor's Rating Services ("Standard &
Poor's"), there has been a material number of additional downgrades to the
reference obligations in the reference portfolios to which Global DIGIT II has
an exposure.
    Global DIGIT II receives monthly updates as to the reference obligations
in the reference portfolios, for which it has credit exposures. These
portfolios are actively managed by Winchester, a division of Deutsche Bank,
and as a result are subject to change. As of the most recent update on
September 3, 2008, the Global DIGIT II reference portfolios contained the
following reference obligations which were rated below B- by Standard &
Poor's:

    
    -------------------------------------------------------------------------
                                                                       Expo-
                                                                Expo-  sure
                                                 Port-          sure    per
       Issuer       Series    Tranche    ISIN    folio Rating  ('000) unit(1)
    -------------------------------------------------------------------------
    C-Bass Ltd      16A        C     US12498YAE95   1   CCC+ $ 12 099  $ 1.16
    Harborview
     Mortgage Loan
     Trust Series
     2006-12(2)     2006-12    B5    US41162DAN93   1   CCC  $  6 980  $ 0.67
    SECURITIZED
     ASSET BACKED
     RECEIVABLES
     LLC TRUST      2005-HE1   M2    US81375WGG50   1   CCC  $  6 980  $ 0.67
    STRUCTURED
     ASSET MORTGAGE
     INVESTMENTS
     INC            2006-AR5   B4    US86360JAW18   1   CCC  $  2 325  $ 0.22
    STRUCTURED
     ASSET MORTGAGE
     INVESTMENTS
     INC            2006-AR5   B5    US86360JAX90   1   CCC  $  2 325  $ 0.22
    GLACIER
     FUNDING CDO    2006-4A    A2    US37638NAB73   1   CC   $  4 099  $ 0.39
    STATIC
     RESIDENTIAL
     CDO (START)
     2006-A Ltd     2006-A     B     US85768VAC81   1   CC   $ 13 890  $ 1.34
    STATIC
     RESIDENTIAL
     CDO (START)
     2006-B
     Ltd(2)         2006-B     A1B   US85768XAB64   1   CC   $ 23 267  $ 2.24
    -------------------------------------------------------------------------
    DUKE FUNDING,
     LTD.           2006-11    A1E   XS0261421480   2   CCC+ $ 27 751  $ 2.67
    GREENPOINT
     MORTGAGE
     FUNDING
     TRUST(2)       2005-AR4   M6    US39538WCN65   2   CCC  $ 18 322  $ 1.76
    Harborview
     Mortgage Loan
     Trust Series
     2006-7(2)      2006-7     B5    US41161VAK61   2   CCC  $  8 325  $ 0.80
    Harborview
     Mortgage Loan
     Trust Series
     2006-12(2)     2006-12    B5    US41162DAN93   2   CCC  $ 31 220  $ 3.00
    Home Equity
     Asset Trust    2006-4     M5    US437084VV50   2   CCC  $  3 469  $ 0.33
    MORGAN STANLEY
     Capital I      2006-HE2   M5    US617451FA24   2   CCC  $  3 469  $ 0.33
    RESIDENTIAL
     ASSET
     MORTGAGE
     PRODUCTS,
     INC.           2006-NC2   M5    US75156TAH32   2   CCC  $  3 469  $ 0.33
    Securitized
     Asset Backed
     Receivables
     LLC            2006-OP1   B1    US81375WJM91   2   CCC  $  5 550  $ 0.53
    Ivy Lane CDO
     2006-1         2006-1     A1    US46601QAC24   2   CCC- $ 31 976  $ 3.08
    BROADWICK
     FUNDING,
     LTD.(2)        2006-1A    C     US11161RAF91   2   CC   $ 10 074  $ 0.97
    Citius
     Funding Ltd    2006-1     C     US17305CAD11   2   CC   $  5 110  $ 0.49
    KNOLLWOOD
     CDO LTD.       2006-2A    B     US49916RAD26   2   CC   $  6 765  $ 0.65
    STATIC
     RESIDENTIAL
     CDO (START)
     2006-A
     Ltd(2)         2006-A     D     US85768VAE48   2   CC   $ 10 197  $ 0.98
    STATIC
     RESIDENTIAL
     CDO (START)
     2006-B
     Ltd(2)         2006-B     A1B   US85768XAB64   2   CC   $ 17 345  $ 1.67
    ACE SECURITIES
     CORP.          2006-HE1   M7    US004421WX73   2   CC   $ 14 570  $ 1.40
    Nautilus CDO    2007-4     A3    US63910JAD72   2   CC   $  8 054  $ 0.77
    -------------------------------------------------------------------------
    LONG HILL, LTD. 2006-1A    A3    US54266TAE29   3   CCC+ $  5 227  $ 0.50
    VERTICAL CDO
     LTD.           2A         A2    US925338AC98   3   CCC+ $  3 267  $ 0.31
    Ace Securities
     Corp           2005-HE6   M7    US004421ST18   3   CCC  $ 13 068  $ 1.26
    FIRST FRANKLIN
     MTG LOAN
     ASSET BACKED
     CERTIFICATES   2006-FF17  M3    US32028KAJ51   3   CCC  $  6 534  $ 0.63
    GREENPOINT
     MORTGAGE
     FUNDING
     TRUST(2)       2005-AR4   M6    US39538WCN65   3   CCC  $  3 683  $ 0.35
    Harborview
     Mortgage Loan
     Trust Series
     2006-7(2)      2006-7     B5    US41161VAK61   3   CCC  $  3 267  $ 0.31
    Harborview
     Mortgage Loan
     Trust Series
     2006-12(2)     2006-12    B5    US41162DAN93   3   CCC  $  6 534  $ 0.63
    Alexander Park
     CDO, Ltd       2004-1A    C     US014684AD66   3   CCC- $  1 307  $ 0.13
    Duke Funding
     VI Ltd         2004-1     A3    US264407AF46   3   CCC- $ 22 869  $ 2.20
    GEMSTONE CDO LTD           C     US36868BAE02   3   CCC- $  6 534  $ 0.63
    STAtic
     reSIDENTIAL
     TRUST          2005-BA    D     US85768QAF28   3   CCC- $ 12 523  $ 1.21
    BROADWICK
     FUNDING,
     LTD.(2)        2006-1A    C     US11161RAF91   3   CC   $  5 422  $ 0.52
    Duke Funding
     VII Ltd        2004-1A    3A    US264403AC01   3   CC   $ 13 062  $ 1.26
    E(1)Trade ABS
     CDO III, Ltd.  2006-5A    A2    US26925WAC01   3   CC   $  9 801  $ 0.94
    KNOLLWOOD CDO
     LTD.           2006-2A    C     US49916RAE09   3   CC   $ 12 712  $ 1.22
    Nautilus CDO    2006-3     A3V   US639099AD28   3   CC   $  3 144  $ 0.30
    STATIC
     RESIDENTIAL
     CDO (START)
     2006-A Ltd     2006-A     C     US85768VAD64   3   CC   $ 19 556  $ 1.88
    STATIC
     RESIDENTIAL
     CDO (START)
     2006-A Ltd(2)  2006-A     D     US85768VAE48   3   CC   $  3 201  $ 0.31
    STATIC
     RESIDENTIAL
     CDO (START)
     2006-B Ltd     2006-B     C     US85768XAF78   3   CC   $ 15 028  $ 1.45
    TRAINER WORTHAM
     FIRST REPUBLIC
     CBO            3          C     US892881AD58   3   CC   $ 22 216  $ 2.14
    VERTICAL
     CDO LTD.                  A3    US925345AE06   3   CC   $ 10 454  $ 1.01
    -------------------------------------------------------------------------
    (1) Maximum loss per unit for Portfolios 1, 2 and 3 is $2.27, $3.08 and
        $4.01, respectively.
    (2) Security underlying multiple portfolios
    

    Global DIGIT II has a "first loss" exposure to each of the reference
portfolios but exposure per unit for each of reference portfolios 1, 2 and 3
is capped at $2.27, $3.08 and $4.01, respectively. The exposure per unit for
each of these reference obligations is set forth in the last column. Should
any of these reference obligations default, the incurred loss will be equal to
the exposure of the respective obligation net of recoveries (if any). Note
that certain credits, which are noted with a "(2)" appear in more than one
reference portfolio, so that a loss on that credit will impact more than one
reference portfolio.
    As described in a Global DIGIT II press release dated August 22, 2008,
subject to the completion of the Disengagement Transaction which itself is
conditional on the implementation of the Plan, an amount of $8,567,398
(approximately $0.82 per unit) held in escrow under a standstill agreement
between Global DIGIT II and Silverstone would be released in full to Global
DIGIT II, as well as an amount of $5,611,833 (approximately $0.54 per unit)
which has been accreting in respect of the residual amount that would
otherwise have been payable to Global DIGIT II at the maturity date of the
Global DIGIT II swaps.
    Any loss incurred on the reference obligations listed above, net of any
recoveries, will reduce the accreted value per unit of Global DIGIT II, which
stood as at June 30, 2008 at $9.88 as reported in the Management Report on
Fund Performance.

    About Global DIGIT II

    Global DIGIT II provides an economic interest in an equity tranche of
credit default swap agreements in respect of portfolios of mortgage-backed
securities, asset-backed securities, structured finance securities, synthetic
corporate exposures and other fixed-income securities.




For further information:

For further information: François Rivard, (514) 879-6405,
http://info.fbn.ca/trusts

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Global Diversified Investment Grade Income Trust II

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