ROC Pref III Corp. Announcement



    TORONTO, Sept. 11 /CNW/ - By press release dated September 9, 2008, ROC
Pref III Corp. ("ROC III") announced that the US federal government had placed
government sponsored entities ("GSE's") known as Fannie Mae and Freddie Mac
under conservatorship, and discussed the potential consequences of these
events to ROC III investors. At the time of the release ROC III had not
received a credit event notice in respect of its exposure to these two
entities. ROC III has now received notices of a credit event from TD Bank, the
issuer of the Credit Linked Note, in respect to these GSE's as a result of the
conservatorship of the GSE's.
    CC&L and ROC III are reviewing and will explore the options, legal and
otherwise, that are available to ROC III relating to the delivery of the
credit event notices. The conservatorship announcement seems to have improved
credit circumstances of the GSE's and therefore the delivery of the credit
event notices by TD Bank is not consistent with the GSE's improved prospects.
    If the credit event notices are valid, these credit events will reduce
the number of defaults that can be sustained by ROC III in order to pay $25.00
per Preferred Share at maturity and continue to pay regular quarterly
distributions, from approximately 7.3 to 5.3 defaults, based on the 40% fixed
recovery rate feature of the Credit Linked Note. In the first three and a half
years since its inception ROC III has experienced one default which occurred
in March of 2006. The Preferred Shares are currently rated P-2 (low) but the
credit event notices will likely have an adverse impact on the rating.
    ROC III'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 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: Neil Murdoch, President & CEO, Connor, Clark & Lunn Capital Markets
Inc., (416) 364-2839, nmurdoch@cclgroup.com or Darren Cabral, Vice-President,
Connor, Clark & Lunn Capital Markets Inc., (416) 214-6182 or 1-888-276-2258,
dcabral@cclgroup.com

Organization Profile

Connor, Clark & Lunn Capital Markets Inc.

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ROC PREF III CORP.

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