EFTA01386826

RIN II • 094 Alpha Group Capital LLC [Moody's Investors Service Inc. ("Moody's") research shows infrastructure debt as less risky, having lower default and higher recovery rates compared with debt issued by companies operating in other sectors, including leveraged buy-out debt27. Moody's analysis found that over the period from 1983 to 2016. infrastructure debt had meaningfully lower default rates across all rating categories than other non-financial corporate sectors.) See Exhibit 10 below. Exhibit 10: Moody's Default Rates and Loss Rates by Industry Seetorm Default Rates for Ba Rated Debt Ultimate Credit Loss Rates for Ba Rated Debt Min I,.M1esfi.tte ROA and Rome, Pates 1983 le toad/a. m£0 Furthermore, infrastructure debt with a "Ba" credit rating profile had better default statistics than investment-grade debt from other non-financial corporate sectors. In addition to lower default rates, infrastructure debt also exhibits credit loss rates that are lower than in other non-financial corporate sectors across multiple rating profiles with "Ba" infrastructure debt again substantially outperforming other non-financial corporate sectors. Private infrastructure debt typically offers significant protections in loan documentation to protect lenders in the event of underperformance. These protections may include financial maintenance covenants, lock-up" and other cash recapture mechanisms, restrictions on certain business activities, representations and warranties, security over assets and/or shares, and detailed reporting requirements. 27 Source. infrastructure Default and Recovery Rates 1983-2016: Moody's. July 2017. Source: 'Infrastructure Default end Recovery Rates 1983-2016: Moody's. July 2017 Confidential 26 February 2018 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0088703 CONFIDENTIAL SDNY_GM_00234887 EFTA01386826