ROC Pref III Corp. Announcement



    TORONTO, Aug. 18 /CNW/ - ROC Pref III Corp. announces that its Preferred
Shares have been removed from CreditWatch with negative implications and
affirmed its P-2 (Low) rating. The rating on the Preferred Shares reflects the
rating on the fixed-rate managed credit linked note issued by The
Toronto-Dominion Bank (the "CLN"). The return on the CLN, and thus on the
Preferred Shares, is linked to the credit performance of a portfolio of 126
companies (the "Reference Portfolio").
    The Reference Portfolio is actively managed by Connor, Clark & Lunn
Investment Management Ltd. (the "Investment Manager"). The Investment Manager
commented that "we remain confident in the overall portfolio credit quality.
The vast majority of the holdings are performing well despite the challenges
in the US housing and mortgage market."
    The Preferred Shares benefit from the protection of a first loss tranche
equal to 3.35% of the Reference Portfolio and from a fixed recovery rate of
40% on any defaults. As a result, ROC Pref III Corp. will be able to sustain 7
defaults, which is approximately 2.5 times the average default rate and 1.3
times the worst default rate experienced in a portfolio of the same credit
quality as the Reference Portfolio in any 3.7 year period since 1981. ROC Pref
III Corp.'s Preferred Shares pay a fixed quarterly coupon of 4.40% on their
$25.00 principal value and will mature on March 22, 2012. The Standard &
Poor's rating addresses the likelihood of full payment of interest and payment
of $25.00 principal value per Preferred Share on the maturity date.
    The Preferred Shares are listed for trading on the Toronto Stock Exchange
under the symbol RPB.PR.A.





For further information:

For further information: please visit www.cclcapitalmarkets.com or
contact: Darren Cabral, Vice-President, Connor, Clark & Lunn Capital Markets
Inc., (416) 214-6182 or 1-888-276-2258, dcabral@cclgroup.com,
www.cclcapitalmarkets.com

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Connor, Clark & Lunn Capital Markets Inc.

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