EFTA Document EFTA01372987

Infra Debt Historical Default and Recovery Rates Loans to infrastructure obligors can provide attractive spreads and low default / high recovery rates Default Rates for Ba and B Rated Debti • Infrastructure debt has generally lower default rates than similarly rated debt of non-financial corporates' • 10 year cumulative default rate for Ba and B infrastructure debt is 8.1% and 22.2%, respectively, while Ba and B non- financial corporates experience 10 year cumulative default rates of 18.3% and 39.4%, respectively' 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% ■ Fa, Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 I Year 7 Year 8 Year 9 Year 10 .8a Corp Infra and Project Finance Debt Seamier Ba Non-Financial Corporate Issuers Ultimate Credit Loss Rates for Ba Rated Debt.' 14% 12% • Credit loss rates for Ba infrastructure debts over a 10 year 10% period are significantly lower than for Ba non-financial 8% corporates (c.3.9% vs. c.11.5%)' 6% 4% • RIN's portfolio is comprised of senior secured infrastructure loans 2% 0% • Year 1 Year 2 Year 3 Year 4 Year S Year 6 Year 7 Year 8 Year 9 Year 10 - 8a Corp Infra and Project Finance Debt Securities 8a Non-Financial Corporate Issuers (1) Sources Infrastructure Default and Recovery Rates 1983-2016. Moody's, July 2017. Past performance is not a guarantee of future results. Deutsche Asset Management Infrastructure Debt Presentation: MN II Equity March 2018 29 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0066940 CONFIDENTIAL PROT1 PROT0