Fitch: No Effect on Brookfield Asset Mgmt's Ratings from Recapitalization of BBI

Brookfield Asset Management Inc. (NYSE/TSX/Euronext: BAM) and Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) announced today they that have signed an agreement with Babcock & Brown Infrastructure (ASX: BBI) to sponsor a comprehensive restructuring and recapitalization. In Fitch's view the proposed transaction has no impact on the ratings of BAM (Fitch Issuer Default Rating of 'BBB', with a Stable Outlook). Under this agreement, Brookfield Asset Management and Brookfield Infrastructure have jointly and severally subscribed for a proposed investment in stapled securities and assets of BBI of approximately $1.1 billion.

Fitch notes that a successful closing of the proposed transaction would add a global portfolio of regulated utility and pipeline assets as well as other energy, power, and transportation investments to Brookfield's assets under management and would also increase the volume and diversity of Brookfield Asset Management's cash flow from investments. Fitch also notes that Brookfield Asset Management has adequate liquidity to fund its portion of the transaction.

Fitch believes that the proposed transaction is a further illustration of Brookfield's opportunistic investment strategy, which reflects management's goal of adding infrastructure assets to its portfolio under management. It also reflects Brookfield Asset Management's strategy of teaming up with additional investors to fund growth, which reduces capital commitments at the BAM level.

The transaction is subject to BBI shareholder approval with a vote scheduled for November 2009, as well as other customary regulatory approvals and clearances.

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