DBRS Places GlobalBanc Advantaged 8 Split Corp. Preferred Shares Under Review – Negative

DBRS has today placed the Preferred Shares issued by GlobalBanc Advantaged 8 Split Corp. (the Company) Under Review with Negative Implications following the Company’s announcement of a revised dividend policy.

The Preferred Shares are entitled to fixed cumulative quarterly dividend payments of $0.1125 per share, yielding 4.5% per annum on the initial share price of $10. The Company has reduced the December 31 distribution to $0.07 per Preferred Share. For 2009, the Company plans to pay a quarterly dividend amount of one-quarter of the forecasted dividends to be received by the Company less an estimate of the expenses of the Company, in order for the Company to avoid a sale of assets to pay Preferred Share distributions.

As a result of the deterioration of the Company NAV and the decision by the Company to reduce the Preferred Shares dividend, DBRS has placed its rating of Pfd-5 (low) on the Preferred Shares Under Review with Negative Implications.

Note:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Split Share Issuers: A Performance Overview which can be found on our website under Methodologies.

This is a Structured Finance rating.