Fitch Affs Flaherty & Crumrine/Claymore Total Return Fund's Pfd Shares

Business Wire, Nov 9, 2004

NEW YORK -- Fitch Ratings affirms the ratings on the following Flaherty & Crumrine/Claymore Total Return Fund preferred shares at 'AAA':

Flaherty & Crumrine/Claymore Total Return Fund Inc.

-- Auction market preferred stock 2,570 shares series T7;

-- Auction market preferred stock 2,570 shares series W28.

The affirmation is based on the fund's consistent compliance with asset coverage and preferred share basic maintenance amount tests, as well as the quality and experience of the asset manager.

Flaherty & Crumrine/Claymore Total Return Fund is a closed-end management investment company that invests primarily in a portfolio of preferred stocks and debt securities. The fund is registered under the Investment Company Act of 1940, which permits closed-end funds to borrow funds through the issuance of debt and preferred stock. Under the 1940 Act, closed-end funds may borrow up to 50% of the fund's value through the issuance of preferred shares and debt. The fund's current preferred share issuance equates to roughly 36% of its net asset value, and the fund has no outstanding debt.

The investment advisor for the fund is Flaherty & Crumrine Incorporated (F&C), which was founded in 1983. F&C has been active in the management of portfolios of preferred securities, including related hedging activities since 1983. F&C also manages the Flaherty & Crumrine Preferred Income Fund, Flaherty & Crumrine Preferred Income Opportunity Fund, and the Flaherty & Crumrine/Claymore Preferred Securities Income Fund, all rated 'AAA' by Fitch. As of Sept. 30, 2004, the F&C had aggregate assets under management of approximately $3.2 billion.

Claymore Securities, Inc. (Claymore) serves as the fund's servicing agent. Claymore is a privately-held financial services company offering unique investment solutions for financial advisors and their valued clients. Claymore entities have provided supervision, management, servicing, or distribution on approximately $9.5 billion in assets through closed-end funds, defined portfolios, separately managed accounts and mutual funds.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch web site at 'www.fitchratings.com'.