Gatehouse Capital Inc.

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

Global Credit Pref Corp.

January 24, 2006 09:32 ET

Global Credit Pref Corp.: P-2 rating

TORONTO, ONTARIO--(CCNMatthews - Jan. 24, 2006) - Standard & Poor's Ratings Services yesterday lowered the rating of Global Credit Pref Corp.'s (TSX:GPA.PR.A) preferred shares to P-2 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$63.866 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 129 companies in an equally weighted portfolio (the "CLN Portfolio").

There have been no defaults in the CLN Portfolio to date. Further, the credit linked note has been structured so that it is unaffected by the first net losses on the CLN Portfolio up to 5.12% of the initial value of the CLN Portfolio (representing defaults by 11 companies in a CLN Portfolio comprised of 129 companies) based on a fixed recovery rate of 40%.

As previously announced, the Company has declared a cash distribution of $0.3281 per preferred share consisting of a return of capital on such preferred shares equal to $0.3281 per share payable on January 31, 2006 to holders of record at the close of business on January 20, 2006.

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

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