DBRS Releases Report on CI Financial Corp. and Affiliates

DBRS has today released a report that supports the recent confirmation of the Senior Unsecured Debentures of CI Financial Corp. (CI or the Company) and on both the Issuer Rating and Senior Unsecured Debt ratings of CI’s major operating subsidiary, CI Investments Inc. (CII), at A (low) with Stable trends.

The Issuer Rating of CII reflects CII’s contribution to CI as its major operating subsidiary, housing the mutual fund manufacturing operation and representing more than 95% of consolidated CI revenues and earnings. CI’s senior debt benefits from a CII guarantee that ranks pari passu with the senior obligations of CII. Conversely, CII’s outstanding debt is likewise supported by a guarantee from CI on the same senior basis.

The primary driver of the ratings is the Company’s strong business franchise and its relatively large size in the mutual fund industry, which is particularly sensitive to economies of scale. This size benefit is offset to some extent by the volatility inherent in equity markets generally and by increasing competition from other wealth management service providers and products. Supporting the business has been strong fund performance, achieving first or second quartile ten-year performance from more than 80% of the Company’s assets under management (AUM). DBRS attributes much of the Company’s success to effective operating procedures, discipline and active risk management controls.

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Today’s report and the November 28, 2011, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.