DBRS Places Goldman Sachs Group Inc. Issuer Rating UR-Pos

Dominion Bond Rating Service (“DBRS”) has today placed the Issuer Rating of The Goldman Sachs Group Inc. (“Goldman Sachs” or the “Company”) “Under Review with Positive Implications”. DBRS has also confirmed the Commercial Paper ratings at R-1 (middle). The trends for the Commercial Paper ratings are Stable.

DBRS has placed the Issuer Rating “Under Review with Positive Implications” as a result of Goldman Sachs’ success in execution of its strategies to increase earnings diversification – reducing earnings volatility – while maintaining leadership in equity capital markets and investment banking products.

DBRS views the increasing earnings diversification as a contributing factor to reducing earnings volatility. The Company has been growing and diversifying its Fixed Income, Currency, Commodity (“FICC”), and Asset Management and Security Services businesses, which historically were less significant contributors to earnings relative to its strong equities and investment banking businesses. Partially benefiting from the strength of fixed income markets, FICC contributed to 36% of total net revenue in the first nine months of 2005. The Company also has sizeable prime brokerage and private banking groups that are significant contributors to Asset Management and Security Services businesses, which contributed 19% of total net revenue in the first nine months of 2005. DBRS expects Goldman Sachs to continue to diversify its operations, thereby strengthening its ability to weather the inherent volatility of markets.

DBRS believes Goldman Sachs’ leadership in equity capital markets and investment banking products provides the Company with a competitive advantage. Over the past four years, Goldman Sachs has consistently ranked in the top three in global equity and equity-related business (as measured by league tables). The Company has strength in both initial public offerings (IPOs) and secondary offerings. In worldwide completed mergers and acquisitions (M&A) Goldman Sachs has dominated since the end of 2001. DBRS expects the Company to retain these league table rankings, especially in higher margin businesses, including IPOs and M&A.

Challenges facing Goldman Sachs include managing its leverage to volatile capital markets, especially given its appetite for trading activities, and increasing competition from second-tier players. However, structural changes could impact profitability. Similar to its peers, litigation risk remains a concern. The outcome of class action suits is difficult to predict, but DBRS continues to believe settlement costs will not be of a magnitude that will impact ratings.

DBRS’s ratings of Goldman Sachs Canada Finance Co. and Goldman Sachs Canada are based on the guarantee of The Goldman Sachs Group, Inc.