DBRS Downgrades Kingsway Linked Return of Capital Trust to Pfd-4

DBRS has today downgraded the LROC Preferred Units issued by Kingsway Linked Return of Capital Trust to Pfd-4 from Pfd-3. The rating remains Under Review with Negative Implications, where it was initially placed on February 10, 2009.

The LROC Preferred Units are supported by an exposure to a note guaranteed by Kingsway Financial Services Inc. and Kingsway America Inc. (collectively, Kingsway) through a forward purchase agreement. The downgrade of the LROC Preferred Units is a result of DBRS downgrading the long-term debt ratings of Kingsway on June 4, 2009, to BB (low) from BBB (low) and leaving the ratings Under Review with Negative Implications.

The redemption date for the LROC Preferred Units will be June 30, 2015.

Notes:
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.