The Consumers' Waterheater Income Fund
TSX : CWI.UN

The Consumers' Waterheater Income Fund
The Consumers' Waterheater Operating Trust

February 03, 2010 14:49 ET

The Consumers' Waterheater Income Fund and The Consumers' Waterheater Operating Trust Provide Ratings Update

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2010) - The Consumers' Waterheater Income Fund ("Fund") (TSX:CWI.UN) and The Consumers' Waterheater Operating Trust ("Trust") report that ratings issued by DBRS Limited ("DBRS") and Standard & Poor's Rating Services ("S&P") on the Trust's Series 2009-1 Senior Notes and Series 2009-2 Senior Notes ("2009 Notes") have changed recently following the repayment of the Series 2003-1 A-2 Secured Notes on January 28, 2010.

On February 1, 2010, DBRS confirmed its rating of "A" on the Trust's 2009 Notes, but changed its outlook from "stable" to "negative". The outlook is based on DBRS' concern about attrition and "the potential for a modest erosion in coverage metrics in 2010." On February 2, 2010, S&P announced it changed its rating and outlook on the 2009 Notes to "A- / stable" from "A / negative". While S&P views the Trust's risk profile as strong, they reported their concern about the impact of competition on the Trust's financial profile, among other things.

About The Consumers' Waterheater Income Fund

The Fund owns a portfolio of approximately 1.3 million installed water heaters and other assets, rented primarily to residential customers in Ontario. The Fund also operates Stratacon Inc., a leading "smart" sub-metering business, with sub-metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.

Additional information regarding the Fund, including its current Annual Information Form is available on SEDAR at www.sedar.com. Additional information on the sub-metering business is available at www.stratacon.ca.

Contact Information

  • The Consumers' Waterheater Income Fund and
    The Consumers' Waterheater Operating Trust
    R. Stephen Bower, FCA
    CFO
    +1 905 943.6292 or +1 877 877.0142