DBRS Confirms Rating of Diversified Canadian Financial II Corp.

Dominion Bond Rating Service (“DBRS”) has today confirmed the rating of the Senior Preferred Shares issued by Diversified Canadian Financial II Corp. (the “Company”), a split share company that holds a portfolio of preferred shares (the “Portfolio Shares”) within the Brookfield Asset Management Inc. group of companies.

The purchase of the shares was originally funded with Senior Preferred Shares (60%) and Capital Shares (40%). Holders of the Senior Preferred Shares receive quarterly distributions in an amount that will provide for an annual yield of 6.10%. The current downside protection of 45% and over 1.54 times dividend coverage as of December 31, 2005, has shown gradual improvement since inception. The redemption date of the Senior Preferred Shares is set on December 31, 2011. The current rating of the Senior Preferred Shares is based primarily on the asset coverage available and diversification of the underlying businesses. The main constraint to the rating is the Company’s dependence at maturity on refinancing the Portfolio Shares or sale of shares, most which are currently not listed.