Date of release: October 23, 2001, 17:26 (New York)

Industry : Derivatives & Split Shares

DBRS Downgrades Global Telecom Split Share to Pfd-3 (low)


Huston Loke, CFA, Greg Nelson / 416-593-5577 ext.2233, ext.2224 /
    e-mail: hloke@dbrs.com


Global Telecom Split Share
 Rating  Trend  Rating Action  Debt Rated
 Pfd-3 (low)  Stable  Downgraded  Preferred Shares

DBRS is downgrading the ratings of the Preferred Shares issued by Global Telecom Split Share ("the Company") from Pf-2 to Pfd-3 (low). Global Telecom Split Share is a mutual fund corporation that invests in selected companies in the following industries: telecommunications services, emerging markets telcos, cable and wireless, emerging markets cable and wireless, and communications technology. Mulvihill Capital Management, the investment manager of the Company, uses covered call options in respect of the underlying shares as a source of income and growth. The rating is being lowered because asset coverage in the portfolio no longer supports the previous rating of Pfd-2. As of September 30, 2001, holders of the Preferred Shares had approximately 16% downside protection. Share prices in the sector to which the Company is exposed have performed poorly over the past two years, adversely affecting protection levels available to the Company. Continuing weakness in this area may result in additional negative rating action.

Dominion Bond Rating Service Limited (DBRS) will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in purchasing this report, please contact us at: info@dbrs.com.

DBRS is a Toronto-based, full-service credit rating agency established in 1976. Privately owned and operated without affiliation to any organization, DBRS is respected for its independent, third-party evaluations of corporate and government issues, spanning North America, Europe and Asia. DBRS's extensive coverage of securitizations and structured finance transactions solidifies our standing as a leading provider of comprehensive, in-depth credit analysis.

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