Gatehouse Capital Inc.

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

Global Credit Pref Corp.

May 23, 2006 09:40 ET

Global Credit Pref Corp.-P-2 'Low' Rating

TORONTO, ONTARIO--(CCNMatthews - May 23, 2006) - Global Credit Pref Corp. (TSX:GPA.PR.A) -

Standard & Poor's Ratings Services lowered the rating of Global Credit Pref Corp.'s preferred shares on May 19 to P-2 (Low) and removed them from CreditWatch. The rating on the preferred shares of Global Credit Pref Corp. mirrors the lowering of the rating on the C$55,976,000 million fixed-rate static portfolio credit linked note issued by The Toronto-Dominion Bank to BBB-.

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").

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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