DBRS Confirms Faircourt Split Seven Trust at Pfd-2

Dominion Bond Rating Service (“DBRS”) has today confirmed the ratings of Faircourt Split Seven Trust (“Split Seven” or the “Trust”) as indicated above.

The Trust holds a portfolio of Canadian income trusts and funds (the “Portfolio”) composed, as of September 2005, of 5.9% in real estate investment trusts, 46.3% in commodity-based royalty trusts, 30.6% in business and industrial trusts, and 17.2% in pipelines and power generation trusts. The Trust’s top ten holdings accounted for 42% of the Portfolio investments for the same period.

At inception, the Portfolio provided downside protection of approximately 56%, as of March 17, 2004, for the principal amount of the Preferred Securities. As of December 31, 2005, the downside protection available to holders of the Preferred Securities remained relatively stable at about 57%. As of March 2004 (inception), the trailing yield of the Portfolio was 9.6%. As of September 2005, the annualized Portfolio yield was 9.49%, which provided an interest coverage ratio of 1.82 times (x). The redemption date of the Preferred Securities and the Units is set on March 31, 2011.

Holders of the Preferred Securities will be entitled to receive fixed, quarterly distributions in an amount that will provide for an annual yield of 6.25%, while the Unit holders will receive monthly distributions to yield 9.0% per annum. There is an asset coverage test that does not permit any distributions to the Unit holders if the net asset value (NAV) of the Portfolio is less than 1.4x the outstanding principal amount for the Preferred Securities. The current rating confirmation of the Preferred Securities is based primarily on the available downside protection and the diversification of the underlying funds in the Portfolio. The main constraint to the rating is the dependence of the Trust on the value and yield on the underlying Income Funds in the Portfolio, which could change from time to time.