Gatehouse Capital Inc.

Gatehouse Capital Inc.
Global Credit Pref Corp.
TSX : GPA.PR.A

Global Credit Pref Corp.

November 16, 2006 13:41 ET

Global Credit Pref Corp.-Announcement

TORONTO, ONTARIO--(CCNMatthews - Nov. 16, 2006) - Standard & Poor's Ratings Services placed the rating of Global Credit Pref Corp.'s (TSX:GPA.PR.A) P-3 (High) rated preferred shares on CreditWatch with negative implications. The rating on the preferred shares of Global Credit Pref Corp. mirrors the BB+/Watch Neg rating on the C$55,976,000 million fixed-rate static portfolio credit linked note issued by The Toronto-Dominion Bank, which was placed on CreditWatch Negative due to negative rating migration in the reference portfolio.

The Company has exposure to the credit linked note issued by The Toronto-Dominion Bank and held by Global Credit Trust, the return on which is linked to the credit performance of 128 reference entities in an equally weighted portfolio (the "CLN Portfolio").

The return on the credit linked note is linked to the number of defaults experienced over its term among the reference entities in the CLN Portfolio. There has been one default in the CLN Portfolio to date. The credit linked note has been structured so that it will now be unaffected by additional net losses on the CLN Portfolio up to 4.69% of the initial value of the CLN Portfolio (representing defaults by 10 additional reference entities in a CLN Portfolio now comprised of 128 reference entities), based on a fixed recovery rate of 40%.

The preferred shares are listed for trading on the Toronto Stock Exchange under the symbol GPA.PR.A.

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