ROC Pref II Corp. Announcement



    TORONTO, Jan. 21 /CNW/ - ROC Pref II Corp. announces that it expects to
be notified by HSBC Bank Canada of a Credit Event on Quebecor World Inc. as a
result of the company filing a petition in Quebec Superior Court for creditor
protection under the Companies' Creditors Arrangement Act.
    The exposure of ROC Pref II Corp. Preferred Shareholders to Quebecor
World is up to 0.71% of the Reference Portfolio. The ROC Pref II Corp.
Preferred Shares benefit from the protection of a first loss tranche equal to
3.43% of the Reference Portfolio. Therefore, ROC Pref II Corp.'s ability to
meet its investment objectives of paying Preferred Shareholders $25.00 per
Preferred Share on December 31, 2009 and quarterly distributions at a rate of
4.65% or $0.290625 per Preferred Share will not be affected by this Credit
Event. Since its inception on October 1, 2004, the Preferred Shares have been
rated P-1(low) by Standard & Poor's.
    Prior to this Credit Event, ROC Pref II Corp. had the ability sustain
approximately 8 Credit Events, assuming an estimated average recovery rate of
40%, which represents approximately 5.0 times the average and 2.1 times the
worst cumulative historical default level experienced in a portfolio with the
same credit rating distribution over rolling two year periods, being equal to
the time to maturity of ROC Pref II Corp. since during the 25-year period
ending in 2006.
    The Preferred Shares of ROC Pref II Corp. are listed for trading on the
Toronto Stock Exchange under the symbol RPA.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, tbradshaw@cclgroup.com

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