DBRS Confirms Diversified Preferred Share Trust Pfd-2 (low)

Dominion Bond Rating Service (“DBRS”) has today confirmed the rating of the retractable trust units (“Units”) issued by Diversified Preferred Share Trust (the “Trust”) as indicated above.

The Trust held a diversified portfolio of preferred shares and securities. Holdings were selected for purchase based on their inclusion in the Toronto Stock Exchange (“TSX”), with a minimum rating of Pfd-3, and a minimum redemption value of $100 million. The rating approach taken by DBRS was to compute each security’s default risk based on its current rating. The aggregate default risk of Diversified Preferred Share Trust was then compared to the default risk of individual issuers rated at similar levels.

The rating confirmation considers overall satisfactory asset mix and credit-related factors, and does not reflect the weighted risk profile of the underlying securities for increased probability of loss or gain as a result of market-related factors. Holders of the Units receive a flow-through of income distributed to the underlying portfolio on a periodic basis, and on sale, are expected to receive the net asset value (NAV) of the portfolio at that time. The amount of the distribution and the NAV fluctuated in accordance with, among other things, the credit profile of each of the underlying securities, interest rates and interest rate expectations, and any losses or gains on disposition or rebalancing of underlying securities.