Source : Dominion Bond Rating Service

Dominion Bond Rating Service (DBRS) has today changed the ratings of CanWest MediaWorks Inc. (CanWest or the Company) to Under Review with Developing Implications from Under Review with Negative Implications following the Company's announcement that it intends to acquire Alliance Atlantis Communications Inc. (Alliance) for approximately $2.3 billion through a new acquisition company in conjunction with GS Capital Partners, a private equity affiliate of Goldman Sachs & Co.

DBRS will maintain the Under Review with Developing Implications status until there is further clarity regarding the structure and terms of the proposed acquisition. DBRS expects the proposed acquisition entity will likely be structured to require a small initial investment from CanWest, financed from cash on hand.

DBRS notes the acquisition could provide the Company with strategic benefits, including (1) strengthened broadcast mix with strong specialty channels and conventional programming, (2) increased focus in the Company's core Canadian market and (3) potential synergies arising from the acquisition.

DBRS had placed the Company's ratings Under Review with Negative Implications on July 11, 2006, mainly as a result of the potential for a breach of the Company's bank covenants. Since that time, DBRS has gained comfort following an amendment to CanWest's bank covenants that a breach of covenant is unlikely in the near term.

The acquisition is subject to regulatory approval and is expected to close in the spring of 2007.

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