Series S-1 Income Fund
TSX : SRC.UN

Series S-1 Income Fund

February 25, 2009 18:00 ET

Series S-1 Income Fund Announces Review of Withdrawal of SR-1 Rating

CALGARY, ALBERTA--(Marketwire - Feb. 25, 2009) - On December 19, 2008, Standard & Poor's Ratings Services ("S&P") withdrew its Canadian 'SR-1' stability rating on Series S-1 Income Fund (the "Fund") (TSX:SRC.UN). In its notice, S&P stated that the underlying portfolio of income fund investments of the Fund continues to perform in a manner that reflects the highest level of stability in their distributable cash generation; however, the SR-1 stability rating has been withdrawn in light of a number of evolving market issues affecting Canadian income funds. For further details, please review the Ratings Direct report dated December 19, 2008 issued by Standard & Poor's at http://www.citadelfunds.com/citadel_funds/uploadedfiles/224200915304SPWithdrawsRating.pdf.

The Declarations of Trust for the Fund provides as follows:

In the event that S&P at any time assigns a Stability Rating other than SR-1 to the Fund, the Trustee, together with the Investment Manager and the Administrator, shall take all commercially reasonable steps necessary in order for the Fund to qualify for an SR-1 Stability Rating as soon as reasonably possible. If within 180 days of the Fund being assigned a Stability Rating other than SR-1 it is not reasonably foreseeable that the Fund will qualify for an SR-1 Stability Rating, then the Administrator shall request the Trustee to call a meeting of the Unitholders of the Fund for purposes of re-evaluating the Investment Objectives, Investment Strategy and/or Investment Restrictions of the Fund.

Management of the Fund is currently preparing a proposal that would address the loss of the SR-1 Stability Rating of the Fund that it will present to the Independent Board of Directors of the Administrator of the Fund for consideration and thereafter, if necessary, a proposal will be made to unitholders of the Fund for their consideration and approval. Management expects to provide unitholders with a further update by the end of March 2009.

Contact Information

  • Series S-1 Income Fund
    Joe MacDonald
    Executive Vice President, Sales and Marketing
    1-877-261-9674
    or
    Series S-1 Income Fund
    Andrea Kladar
    Vice President, Sales and Marketing Western Region
    1-866-936-7880
    Website: www.citadelfunds.com