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Diane Vazza, Managing Director

(+1) 212-438-2760

diane_vazza@

standardandpoors.com

Jacinto Torres, Associate Director

(+1) 212-438-3243

jacinto_torres@

standardandpoors.com

Sudeep Kesh, Associate

(+1) 212-438-7982

sudeep_kesh@

standardandpoors.com

Standard & Poor's

55 Water Street

39th Floor

New York, NY 10041

May 2009

Global Credit Comment:

Exposure To Deteriorating Assets

Increases Risks To Private Equity

(Premium)

Global Fixed Income Research


Diane Vazza Jacinto Torres

Managing Director Associate Director

+1 212 438 2760 +1 212 438 3243

diane_vazza@standardandpoors.com jacinto_torres@standardandpoors.com

Sudeep Kesh

Associate

+1 212 438 7982

sudeep_kesh@standardandpoors.com

Global Credit Comment: Exposure To Deteriorating Assets Increases

Risks To Private Equity (Premium)

NEW YORK (Standard & Poor's) May 29, 2009—This year is seeing an avalanche of corporate

downgrades, and private equity investors—following years of torrid private equity activity—are

sharing some of the misery. In the year to date, downgrades have vastly outnumbered upgrades by

almost 15 to 1. This is about 3x worse than the previous high reached in 2001, when the downgrade-toupgrade

ratio was about 5 to 1. In 2008, the ratio was 3.4 to 1, and in 2004-2007, downgrades and

upgrades were about equal. The bulk of the recent corporate downgrades were in the lower rating

categories, and many were ratings lowered to ‘D’ or ‘SD’ as a result of either a missed payment, a

bankruptcy filing, or a distress exchange. Private equity investors are significantly exposed to these

downgrades, including defaults.

The explosion of buy-out activity in recent years inevitably positioned private equity investors squarely

in the speculative-grade segment. In their search for yield, sponsors typically targeted troubled entities,

or at the very least ones that appear to be, and many of these companies are rated speculative grade. It

is in this segment that sponsors are more likely to land an entity with much potential at an attractive

price, and then hopefully sell it for a profit after some sort of restructuring or reorganizing. The

expertise of private equity groups to identify and rehabilitate entities, at a time when liquidity was

abundant and confidence was soaring, worked very well which, in turn, fueled the use of this model

even further. However, the economic landscape has changed dramatically, and the current recession is

bearing down on companies across the ratings spectrum, but is particularly harsher on entities at the

lower end. Poor corporate earnings, an apprehensive consumer market, and reduced access to capital

have significantly eroded credit quality. Entities rated speculative grade have less financial or

operational flexibility and are therefore more vulnerable to further credit degradation. This is evident in

our ratings where speculative grade-rated entities have not only been more volatile historically, but

were also more likely to default (see table 1). On average, during the period 1981-2008, 8.88% of

entities rated ‘B-' and 25.70% of entities rated ‘CCC/C’ defaulted within a year (see table 2). This

statistic even excludes entities that were downgraded to or were newly rated at the ‘B-' and below level

and that have defaulted between calendar years. Although sponsors might have accounted for some of

this credit erosion in their valuations, exit strategies (such as an IPO) are less feasible in the current

environment, perhaps compelling sponsors to the engagement longer and deeper than they had

originally planned.

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 1


Table 1: Global Corporate Transition Matrix (%, 1981-2008)

Rating AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC/C D

AAA 88.39 4.23 2.70 0.70 0.17 0.25 0.11 0.03 0.03 0.00 0.03 0.06 0.00 0.00 0.03 0.00 0.06 0.00

AA+ 2.45 76.93 11.02 3.92 0.92 0.67 0.31 0.12 0.12 0.06 0.00 0.00 0.00 0.06 0.00 0.00 0.00 0.00

AA 0.52 1.36 81.45 7.60 2.77 1.36 0.44 0.44 0.15 0.06 0.04 0.04 0.02 0.00 0.00 0.02 0.06 0.02

AA- 0.06 0.16 4.51 77.36 9.42 2.86 0.69 0.27 0.16 0.08 0.04 0.00 0.00 0.04 0.12 0.02 0.00 0.04

A+ 0.00 0.10 0.62 4.70 77.22 8.69 2.63 0.74 0.41 0.09 0.07 0.13 0.01 0.07 0.04 0.01 0.00 0.06

A 0.05 0.06 0.32 0.58 5.16 77.74 6.50 2.81 1.06 0.30 0.16 0.17 0.11 0.12 0.03 0.01 0.02 0.07

A- 0.05 0.01 0.12 0.23 0.67 7.27 75.17 7.56 2.38 0.63 0.17 0.17 0.16 0.12 0.03 0.01 0.05 0.09

BBB+ 0.00 0.01 0.08 0.10 0.33 1.10 7.08 73.17 8.43 2.10 0.43 0.42 0.20 0.28 0.15 0.01 0.10 0.15

BBB 0.01 0.01 0.07 0.05 0.18 0.53 1.32 7.15 74.21 5.81 1.58 0.88 0.39 0.34 0.20 0.04 0.09 0.26

BBB- 0.02 0.02 0.02 0.08 0.07 0.25 0.44 1.54 8.90 70.39 5.55 2.61 1.00 0.59 0.32 0.22 0.34 0.34

BB+ 0.08 0.00 0.00 0.05 0.03 0.16 0.14 0.65 2.34 11.72 63.16 6.14 3.21 1.31 0.82 0.14 0.60 0.57

BB 0.00 0.00 0.06 0.02 0.00 0.11 0.08 0.21 0.83 2.60 8.49 64.23 7.56 2.82 1.46 0.47 0.76 0.80

BB- 0.00 0.00 0.00 0.02 0.02 0.02 0.08 0.15 0.31 0.50 2.05 8.00 64.06 8.30 2.83 0.98 0.96 1.38

B+ 0.00 0.01 0.00 0.05 0.00 0.05 0.10 0.06 0.07 0.11 0.35 1.67 6.80 65.17 7.33 2.51 2.05 2.55

B 0.00 0.00 0.02 0.02 0.00 0.08 0.08 0.04 0.13 0.04 0.25 0.42 1.69 8.53 57.58 7.45 5.40 5.88

B- 0.00 0.00 0.00 0.00 0.04 0.09 0.00 0.18 0.09 0.18 0.22 0.27 0.58 3.26 8.62 52.54 10.63 8.88

CCC/C 0.00 0.00 0.00 0.00 0.06 0.00 0.17 0.11 0.11 0.11 0.06 0.23 0.69 1.37 2.63 7.82 46.89 25.70

Source: Standard & Poor’s Global Fixed Income Research; Standard & Poor’s CreditPro.

Chart. Global Corporate Default Rates: Weakest Links Versus All Speculative-Grade

(%)

70

60

50

40

30

20

10

Weakest Links Trailing 12 Months All Speculative-Grade Trailing 12 Months

Weakest Links Trailing 36 Months All Speculative-Grade Trailing 36 Months

0

Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09

Weakest Links are defined as entities rated ‘B-’ and lower with either a negative outlook or with ratings on CreditWatch with negative implications.

Source: Standard & Poor's Global Fixed Income Research; Standard & Poor's CreditPro®

The number of weakest links—defined as entities rated ‘B-' and lower with a negative outlook or

ratings on CreditWatch with negative implications—increased dramatically to 293 as of May 13, 2009,

from just 100 at the end of 2007 (see “Global Bond Markets' Weakest Links And Monthly Default

Rates,” published May 18, 2009, on RatingsDirect). The erosion of credit quality leads to lower ratings

and more entities with negative outlooks or ratings on CreditWatch negative as well as increased

vulnerability to default. Of the 293 weakest links, more than half have been involved in transactions

with private equity at one point or another (see table 2). The vast majority of these entities were

previously rated at higher rating categories but have seen significant deterioration in recent months.

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 2


Some of these entities were even rated investment grade not too long ago. Weakest links are

particularly vulnerable because they tend to have less tolerance for absorbing economic or market

stress. Relative to the entire corporate speculative-grade population, it is not a surprise that weakest

links would have a larger proportion of entities defaulting, particularly during periods of economic

stress. In the 2001-2002 cycle, for example, more than half of the weakest links defaulted within 12

months, and nearly 65% defaulted within three years (see chart). We expect to see the same trend in the

current cycle.

Corporate casualties in 2009 have already exceed the total in full-year 2008. Similar to the pattern

observed among weakest links, at least 79 of the 140 defaulters through May 28, 2009 (74 of the 126

defaulters in 2008) were involved in a private equity transaction (see table 3). Sponsors might offer

some stability to target companies with their deep pockets and knowledge and experience in managing

distressed companies. In fact, some companies may have even averted bankruptcy with the help of their

sponsors. However, some practices that private equity investors have adopted in recent years could also

have exacerbated the targets’ balance sheets, particularly if they underestimated the severity and

duration of the current economic and financial challenges. We forecast more than 200 defaults in the

U.S. in the next 12 months, and we expect private equity exposure to these casualties to remain

elevated. (For more details, see “U.S. Corporate Default Rate Forecasted To Reach 14.3% By March

2010%,” published April 24, 2009, on RatingsDirect.)

Private equity groups will continue to be drawn to higher-risk assets in search of better returns. The

decline of asset valuations on the heels of the economic recession has hurt private equity investors to a

certain extent. However, this may have also given sponsors a window of opportunity to further build up

and diversify their portfolios. The improved risk-reward potential of some entities with sound business

models make them that much more attractive targets.

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 3


Table 2: Weakest Links With Private Equity Involvement

Entity Ownership Status

Doughty Hanson & Co. (Prior Sponsor); Kohlberg Kravis

Roberts & Co. (Current Sponsor); MML Capital Partners

Sector 13-May-09

Prior Rating

-90 Days 180 Days 1 Year 2 Years

A.T.U Auto-Teile-Unger

(Prior Sponsor); Capiton AG (Prior Sponsor)

Bain Capital, LLC (Prior Sponsor); Kohlberg Kravis Roberts

& Co. (Prior Sponsor); Metalmark Capital LLC (Prior

Sponsor); RSTW Partners (Prior Sponsor); Sun Capital

Partners, Inc. (Current Sponsor); Trimaran Capital Partners

Automotive CCC+ CCC+ B- B- B+

Accuride Corp.

(Current Sponsor) Automotive B- B- B- B+ B+

Acument Global Technologies, Inc. Platinum Equity, LLC (Current Sponsor) Capital Goods CCC+ B B+ B+ B+

CDC Group plc (Prior Sponsor); BNP Paribas Private Forest Products &

Advance Agro Public Co. Ltd. Capital Group (Prior Sponsor)

Building Materials B- B- B- B- B-

Brascan Asset Management Inc. (Current Sponsor); Tricap Forest Products &

Ainsworth Lumber Co. Ltd. Partners Ltd. (Current Sponsor)

Building Materials B- B- SD CC CCC+

Air Canada Cerberus Capital Management, L.P. (Current Sponsor) Transportation B- B B B B

Bain Capital, LLC (Prior Sponsor); Bruckmann, Rosser, Consumer

Alliance Laundry Systems LLC Sherrill & Co. L.L.C. (Prior Sponsor)

Products B- B- B- B- B

American Achievement Corp.

Castle Harlan, Inc. (Prior Sponsor); Fenway Partners

(Current Sponsor); The Carlyle Group (Current Sponsor)

Media &

Entertainment CCC+ B B B B

American Axle & Manufacturing Castle Harlan, Inc. (Prior Sponsor); Fenway Partners

Holdings Inc.

(Current Sponsor); The Carlyle Group (Current Sponsor) Automotive

Media &

CCC+ CCC+ B BB BB

American Media Operations Inc. J.P. Morgan Partners, LLC (Prior Sponsor)

Entertainment CCC+ SD SD CCC+ CCC+

AMH Holdings Inc.

BancBoston Capital, Inc. (Current Sponsor); Harvest

Partners, LLC (Current Sponsor); TGF Management Corp.

(Current Sponsor); Weston Presidio (Prior Sponsor);

National City Equity Partners, LLC (Prior Sponsor); Forest Products &

Investcorp Bank BSC, Private Equity (Current Sponsor) Building Materials CCC+ B- B- B- B-

Angiotech Pharmaceuticals Inc.

Ventures West Management Inc. (Prior Sponsor); Growth

Works (Prior Sponsor); J & A Group, LLC (Current

Sponsor); Richardson Capital Limited (Current Sponsor) Health Care

Chemicals,

Packaging &

Environmental

CC CC CC B- B+

Arclin Canada Ltd. Teachers' Private Capital (Current Sponsor)

Services CCC CCC B- B NR

Atrium Cos. Inc.

Baker & Taylor Acquisitions Corp.

Barneys New York Inc.

Baxi Holdings Ltd.

Berry Plastics Group Inc.

Beverages & More! Inc.

Ardshiel, Inc. (Prior Sponsor); GE Investments (Prior

Sponsor); Heritage Partners, Inc. (Prior Sponsor); HM

Capital Partners LLC (Prior Sponsor); PPM America

Capital Partners, LLC (Current Sponsor); National City

Equity Partners, LLC (Current Sponsor); UBS Capital

Americas (Current Sponsor)

Castle Harlan, Inc. (Current Sponsor); The Carlyle Group

(Prior Sponsor); Willis Stein & Partners, L.L.C. (Prior

Forest Products &

Building Materials CCC- B- B- CCC+ B

Sponsor)

Halpern, Denny & Co. (Prior Sponsor); Istithmar World

Retail/Restaurants B- B B B+ B+

Capital P.J.S.C. (Current Sponsor) Retail/Restaurants CCC B- B- B NR

AlpInvest Partners N.V. (Prior Sponsor); BC Partners

(Current Sponsor); Candover Investments plc (LSE:CDI)

(Prior Sponsor); Phoenix Equity Partners (Prior Sponsor);

Cognetas LLP (Prior Sponsor); Montagu Private Equity

Limited (Prior Sponsor); LGV Capital Limited (Prior

Sponsor); Alpinvest Holding NV (Prior Sponsor); Electra

Partners LLP (Current Sponsor) Capital Goods CCC+ CCC+ CCC+ B B+

Apollo Management, L.P. (Prior Sponsor); Goldman Sachs Chemicals,

Group, Merchant Banking Division (Prior Sponsor); Packaging &

Graham Partners (Prior Sponsor); Panorama Capital (Prior Environmental

Sponsor)

Madison Dearborn Partners, LLC (Prior Sponsor);

Services CC B- B- B B

TowerBrook Capital Partners, L.P. (Current Sponsor) Retail/Restaurants B- B- B- B- B-

Blockbuster Inc. New River Capital Partners (Prior Sponsor) Retail/Restaurants CCC B- B- B- B

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 4


Table 2: Weakest Links With Private Equity Involvement (Continued)

Entity Ownership Status

BFC Financial Corporation (OTCPK:BFCF) (Current

Sponsor); Morgan Stanley Real Estate Fund, Inc. (Prior

Sector 13-May-09

Prior Rating

-90 Days 180 Days 1 Year 2 Years

Sponsor); Grace Brothers Management, LLC (Prior Media &

Bluegreen Corp.

Sponsor)

Entertainment CCC CCC B B B

BMS Holdings Inc.

Bombardier Recreational Products

Inc.

Brookstone Inc.

Builders FirstSource Inc.

Cableuropa S.A.U.

Cambium Learning Inc.

American Capital, Ltd. (NasdaqGS:ACAS) (Prior Sponsor);

Charlesbank Capital Partners, LLC (Current Sponsor);

Lincolnshire Management, Inc. (Prior Sponsor); GSC

Investment Corp (NYSE:GNV) (Current Sponsor) High Technology CCC+ B- B- B- B

Bain Capital, LLC (Current Sponsor); Caisse de Depot et Media &

Placement du Quebec (Current Sponsor)

Bain Capital, LLC (Prior Sponsor); Greylock Partners (Prior

Sponsor); J.W. Childs Associates, L.P. (Current Sponsor);

Temasek Holdings (Pte) Ltd. (Current Sponsor); Barclays

Global Investors, National Association (Prior Sponsor);

Goldman Sachs Asset Management, L.P. (Prior Sponsor);

Barrow, Hanley, Mewhinney & Strauss, Inc. (Prior

Sponsor); Columbia Wanger Asset Management, L.P.

(Prior Sponsor); Buckingham Capital Management Inc.

Entertainment CC B B+ B+ B+

(Prior Sponsor)

Warburg Pincus LLC (Current Sponsor); JLL Partners

Retail/Restaurants CCC B B B B

(Current Sponsor); JZ Capital Partners Limited (LSE:JZCP) Forest Products &

(Prior Sponsor)

Building Materials B- B- B- B+ B+

Bank of America Capital Investors (Current Sponsor);

Cable Partners Europe LLC, Investment Arm (Current

Sponsor); Argan Capital Advisors LLP (Current Sponsor)

J.H. Whitney & Co., LLC (Prior Sponsor); Pacesetter

Capital Group (Current Sponsor); TCW/Crescent

Mezzanine Partners, L.L.C. (Current Sponsor); Veronis

Suhler Stevenson (Current Sponsor)

Caraustar Industries Inc. Wachovia Capital Partners, Inc. (Prior Sponsor)

Carmike Cinemas Inc.

CC Media Holdings Inc.

Court Square Capital Partners (Prior Sponsor); Goldman

Sachs Group, Merchant Banking Division (Prior Sponsor);

The Jordan Company, L.P. (Prior Sponsor); William Blair

Capital Partners, L.L.C. (Prior Sponsor)

Telecommunication

s CCC+ B B B B

Media &

Entertainment

Forest Products &

CCC CCC CCC+ B B

Building Materials CC CCC B- B- B+

Media &

Entertainment B- B- B- B- B-

Bain Capital, LLC (Current Sponsor); Chrysalis Ventures,

Inc. (Prior Sponsor); HM Capital Partners LLC (Prior

Sponsor); Richland Ventures (Prior Sponsor); Thomas H.

Lee Partners, L.P. (Current Sponsor); Highfields Capital

Management, LP (Prior Sponsor); Kensington Capital

Partners Limited (Current Sponsor); McCombs Enterprises Media &

Inc. (Prior Sponsor)

Entertainment B- B B NR NR

CCS Medical

American Capital, Ltd. (NasdaqGS:ACAS) (Prior Sponsor);

The Argentum Group (Prior Sponsor); Warburg Pincus LLC

(Current Sponsor); First Analysis Corporation (Prior

Sponsor); KRG Capital Partners, L.L.C (Prior Sponsor)

Kohlberg & Company, L.L.C. (Current Sponsor); AREA

Property Partners (Prior Sponsor); Lubert-Adler Partners,

Health Care CCC CCC B- B- B-

LP (Current Sponsor); Versa Capital Management, Inc. Consumer

Central Parking Corp.

(Current Sponsor)

Products B- B- B- B B

Checksmart Financial Company Diamond Castle Holdings, LLC (Current Sponsor)

Kensington Partners (Prior Sponsor); Scorpion Capital

Finance Co. CCC+ CCC+ CCC+ B B

Cheniere Energy Inc.

Partners L.P. (Prior Sponsor) Utility CCC+ CCC+ CCC+ CCC+ B

Charlesbank Capital Partners, LLC (Prior Sponsor); Media &

Citadel Broadcasting Corp. Forstmann Little & Co. (Current Sponsor)

Apollo Management, L.P. (Current Sponsor); Desai Capital

Management, Inc. (Prior Sponsor); Royce & Associates,

LLC (Prior Sponsor); Tri-Artisan Capital Partners, LLC

Entertainment CCC+ B+ B+ B+ B+

Claire's Stores Inc.

(Current Sponsor)

Battery Ventures (Current Sponsor); J.P. Morgan Partners,

LLC (Prior Sponsor); Chase H&Q, Investment Arm (Prior

Sponsor); Thoma Cressey Bravo (Prior Sponsor); Granite

Retail/Restaurants B- B- B- B- B

Consona ERP Inc.

Ventures, LLC (Prior Sponsor)

Apax Partners Worldwide LLP (Current Sponsor); Butler

Capital Corporation (Prior Sponsor); Fort Washington

High Technology B- B- B- B- B-

Capital Partners Group (Current Sponsor); Stockwell Forest Products &

Contech Construction Products Inc. Capital LLC (Current Sponsor)

Building Materials

Metals, Mining &

B- B- B+ B+ B+

Continental Alloys & Services Inc. EdgeStone Capital Partners Inc. (Current Sponsor) Steel B- B- B NR NR

Cooper-Standard Automotive Inc.

Goldman Sachs Group, Merchant Banking Division

(Current Sponsor); The Cypress Group (Current Sponsor) Automotive CC CC B B B

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 5


Table 2: Weakest Links With Private Equity Involvement (Continued)

Entity Ownership Status

AEA Investors LP (Current Sponsor); Brentwood

Associates (Prior Sponsor); Charterhouse Group, Inc.

(Prior Sponsor); Wachovia Capital Partners, Inc. (Current

Sponsor); J.H. Whitney & Co., LLC (Prior Sponsor);

Sector 13-May-09

Prior Rating

-90 Days 180 Days 1 Year 2 Years

Clearview Capital, LLC (Current Sponsor); Brookside Forest Products &

CPG International Inc.

Equity Partners (Prior Sponsor)

Morgan Stanley Real Estate Fund, Inc. (Current Sponsor);

NGP Capital Resources Company (NasdaqGS:NGPC)

Building Materials B- B B B B

Crescent Resources LLC

(Current Sponsor)

Lexington Partners (Prior Sponsor); PPM America Capital

Partners, LLC (Current Sponsor); The Carlyle Group (Prior

Sponsor); Welsh, Carson, Anderson & Stowe (Prior

Utility CCC+ B B BB- BB

Sponsor); TD Capital (Prior Sponsor); PCG Capital Media &

Dex Media East LLC

Partners LLC (Prior Sponsor)

Lexington Partners (Prior Sponsor); PPM America Capital

Partners, LLC (Current Sponsor); The Carlyle Group (Prior

Sponsor); Welsh, Carson, Anderson & Stowe (Prior

Entertainment CC CCC+ B+ B+ BB-

Sponsor); TD Capital (Prior Sponsor); PCG Capital Media &

Dex Media Inc.

Partners LLC (Prior Sponsor)

Lexington Partners (Prior Sponsor); PPM America Capital

Partners, LLC (Current Sponsor); The Carlyle Group (Prior

Sponsor); Welsh, Carson, Anderson & Stowe (Prior

Entertainment CC CCC+ B+ B+ BB-

Sponsor); TD Capital (Prior Sponsor); PCG Capital Media &

Dex Media West LLC

Partners LLC (Prior Sponsor)

Entertainment

Media &

CC CCC+ B+ B+ BB-

Donnelley (R.H.), Inc. Welsh, Carson, Anderson & Stowe (Prior Sponsor) Entertainment CC CCC+ B+ B+ BB-

Apollo Management, L.P. (Prior Sponsor); Goldman Sachs

Group, Merchant Banking Division (Prior Sponsor);

Sanders Morris Harris Private Equity (Prior Sponsor); U.S.

Global Investors, Inc. (NasdaqCM:GROW) (Prior Sponsor);

Iroquois Capital, LP (Prior Sponsor); Stark Investments LP

(Prior Sponsor); DKR Capital Inc. (Prior Sponsor); Enable

Capital Management, LLC (Prior Sponsor); Heights Capital

Management, Inc. (Prior Sponsor); Atoll Asset

Management (Prior Sponsor); Basso Capital Management,

L.P. (Prior Sponsor); Diamondback Capital Management, Oil & Gas

LLC (Prior Sponsor); Nite Capital Management, LLC (Prior Exploration &

Dune Energy Inc.

Sponsor); Andrew Carter Capital, Inc. (Prior Sponsor) Production

Media &

CCC+ CCC+ B- B- B-

Eastman Kodak Co. Kingdom Holding Company (SASE:4280) (Prior Sponsor)

American Securities (Prior Sponsor); Trimaran Capital

Entertainment B- B B+ B+ B+

El Pollo Loco Inc.

Electrical Components International

Partners (Prior Sponsor) Retail/Restaurants CCC+ CCC+ B- B- B

Inc. Francisco Partners Management LLC (Current Sponsor)

Apax Partners Worldwide LLP (Prior Sponsor); Metalmark

Capital Goods CCC+ CCC+ CCC+ CCC+ B

Capital LLC (Prior Sponsor); Apax Partners L.P. (Prior Media &

Emmis Communications Corp. Sponsor)

Entertainment

Chemicals,

Packaging &

Environmental

CCC+ B B B B

EnviroSolutions Holdings Inc. Investcorp Bank BSC, Private Equity (Current Sponsor) Services CCC+ CCC+ CCC+ CCC+ B-

ESCADA AG

Euramax International Inc.

Exopack Holding Corp.

HMD Partners (Prior Sponsor); Schroder Investment

Management Limited (Prior Sponsor); Bestinver Gestión,

S.A. S.G.I.I.C. (Current Sponsor); Finartis Group S.A.

(Current Sponsor)

Consumer

Products CC CCC+ B- B+ BB-

Court Square Capital Partners (Prior Sponsor); CVC

Capital Partners Ltd. (Prior Sponsor); Goldman Sachs

Group, Merchant Banking Division (Current Sponsor); BNP

Paribas Leveraged Finance Group (Prior Sponsor) Capital Goods CC CCC+ CCC+ B- B

Capital Southwest Corporation (NasdaqGS:CSWC) (Prior

Sponsor); The Sterling Group, L.P. (Prior Sponsor); Sun

Capital Partners, Inc. (Prior Sponsor); Laud Collier &

Company, LLC (Prior Sponsor); W Capital Partners (Prior

Sponsor)

Chemicals,

Packaging &

Environmental

Services B- B- B- B- B-

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 6


Table 2: Weakest Links With Private Equity Involvement (Continued)

Entity Ownership Status Sector

Oil & Gas

13-May-09

Prior Rating

-90 Days 180 Days 1 Year 2 Years

Express Energy Services Operating, Wachovia Capital Partners, Inc. (Current Sponsor); Exploration &

LP

Macquarie Direct Investment Limited (Current Sponsor) Production CCC B- B NR NR

Freedom Communications Inc.

Freescale Semiconductor Inc.

Frontier Drilling A.S.A

Providence Equity Partners LLC (Current Sponsor); The Media &

Blackstone Group, Private Equity Group (Current Sponsor) Entertainment CCC- CCC+ CCC+ B+ BB

Battery Ventures (Current Sponsor); Lexington Partners

(Current Sponsor); Permira Advisers Ltd. (Prior Sponsor);

SL Capital Partners LLP (Current Sponsor); TPG (Prior

Sponsor); The Blackstone Group, Private Equity Group

(Prior Sponsor); The Carlyle Group (Prior Sponsor); AXA

Private Equity (Current Sponsor); AIG Private Equity AG

(SWX:APEN) (Current Sponsor); GIC Special Investments

(Current Sponsor); AIG Investments (Prior Sponsor); HBK

Private Equity (Current Sponsor); Rosemont Solebury

Capital Management LLC (Current Sponsor) High Technology B- CC B+ B+ BB-

CSFB Private Equity (Prior Sponsor); DLJ Merchant

Banking Partners (Prior Sponsor); The Carlyle Group

(Current Sponsor); Riverstone Holdings LLC (Current

Sponsor); Avista Capital Holdings, L.P. (Current Sponsor)

Global Geophysical Services Inc. Kelso & Company (Current Sponsor)

Grant Forest Products Inc. GSC Investment Corp (NYSE:GNV) (Current Sponsor)

Sandler Capital Management, Private Equity (Prior

Gray Television Inc.

Sponsor)

Oil & Gas

Exploration &

Production B- B- B- B- B-

Oil & Gas

Exploration &

Production

Forest Products &

B- B- B- B- B-

Building Materials

Media &

CCC+ CCC+ B- B- B+

Entertainment CCC+ B- B- B B

Guitar Center Holdings Inc. Bain Capital, LLC (Pending Sponsor) Retail/Restaurants

Chemicals,

Packaging &

Environmental

B- B- B- B- NR

Gundle/SLT Environmental Inc. Code Hennessy & Simmons, L.L.C. (Current Sponsor)

CSFB Private Equity (Current Sponsor); DLJ Merchant

Services CCC+ B- B- B- B-

Banking Partners (Prior Sponsor); Great Hill Partners, LLC Media &

Haights Cross Communications Inc. (Prior Sponsor)

Entertainment CCC- CCC CCC CCC+ CCC+

Harrah's Entertainment Inc.

Apollo Management, L.P. (Current Sponsor); HarbourVest

Partners, L.L.C. (Current Sponsor); TPG (Current

Sponsor); The Blackstone Group, Private Equity Group

(Current Sponsor); The Carlyle Group (Current Sponsor);

Tri-Artisan Capital Partners, LLC (Current Sponsor); SPB

Partners (Current Sponsor)

Media &

Entertainment CCC B- B B+ BB

Harry & David Operations Corp. JZ Capital Partners Limited (LSE:JZCP) (Prior Sponsor) Retail/Restaurants CC CC B- B B

Hawker Beechcraft Inc.

Goldman Sachs Group, Merchant Banking Division

(Current Sponsor); Onex Corporation (TSX:OCX) (Current

Sponsor)

Aerospace &

Defense CC B+ B+ B+ B+

Hayes Lemmerz International Inc.

J.P. Morgan Partners, LLC (Prior Sponsor); JLL Partners

(Prior Sponsor); Palladium Equity Partners, LLC (Prior

Sponsor); TSG Capital Group (Prior Sponsor) Automotive

Forest Products &

CC CCC+ B B B

HeidelbergCement AG WestLB AG - Private Equity Investments (Prior Sponsor) Building Materials B- B+ BB+ BBB- BBB-

Hellas Telecommunications I SARL

HIT Entertainment Ltd.

InSight Health Services Corp.

Instant Web Inc.

Integra Telecom Inc.

Apax Partners Worldwide LLP (Prior Sponsor);

TCW/Crescent Mezzanine Partners, L.L.C. (Current

Sponsor); TPG (Prior Sponsor)

Telecommunication

s B- B- B B B

Apax Partners Worldwide LLP (Current Sponsor); SL

Capital Partners LLP (Current Sponsor); Cyrte Investments

B.V. (Prior Sponsor); Stockwell Capital LLC (Current Media &

Sponsor)

GE Equity (Prior Sponsor); J.W. Childs Associates, L.P.

(Prior Sponsor); The Carlyle Group (Prior Sponsor); The

Entertainment CCC+ CCC+ B B B

Halifax Group (Prior Sponsor) Health Care CCC B- B- B- D

Court Square Capital Partners (Prior Sponsor); Avista

Capital Holdings, L.P. (Current Sponsor)

Media &

Entertainment B- B- B B NR

Boston Ventures Management, Inc. (Current Sponsor);

Nautic Partners, LLC (Prior Sponsor); Bank of America

Capital Investors (Current Sponsor); Shaw Venture

Partners (Current Sponsor); CIT Venture Capital (Current

Sponsor); Banc of America Capital Investors, L.P. prior to Telecommunication

merger with NationsBank Capital Investors (Prior Sponsor) s CC CCC B- B- NR

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 7


Table 2: Weakest Links With Private Equity Involvement (Continued)

Entity Ownership Status Sector 13-May-09

Prior Rating

-90 Days 180 Days 1 Year 2 Years

InterDent Inc.

International Bank of Saint-

Petersburg

International Coal Group LLC

Interstate Hotels & Resorts Inc.

Bessemer Venture Partners (Prior Sponsor); J.P. Morgan

Partners, LLC (Prior Sponsor); DDJ Capital Management,

LLC (Prior Sponsor); Levine Leichtman Capital Partners,

Inc. (Current Sponsor); Sprout Group (Current Sponsor);

St. Paul Venture Capital, Inc. (Prior Sponsor); GSC

Investment Corp (NYSE:GNV) (Current Sponsor)

Värde Partners, Inc. (Prior Sponsor); WL Ross and Co.

LLC (Current Sponsor); GreenLight Capital, Inc. (Prior

Health Care CCC CCC CCC CCC B

Sponsor)

Värde Partners, Inc. (Prior Sponsor); WL Ross and Co.

Bank B- B- B- B- CCC+

LLC (Current Sponsor); GreenLight Capital, Inc. (Prior Metals, Mining &

Sponsor)

Steel B- B- B- B- B-

Lehman Brothers, Private Equity Division (Prior Sponsor); Media &

Keystone Inc. (Prior Sponsor)

Entertainment

Chemicals,

Packaging &

Environmental

CCC+ B B B B

Wachovia Capital Partners, Inc. (Prior Sponsor); Sandler

Capital Management, Private Equity (Prior Sponsor);

William E. Simon & Sons Private Equity Partners, L.L.C.

(Prior Sponsor); Deutsche Bank AG, Investment Arm (Prior

Services CCC+ B B B B-

Sponsor); Citadel Investment Group, L.L.C. (Current Media &

Sponsor)

Entertainment

Forest Products &

CC CCC CCC+ CCC+ CCC+

BancBoston Ventures, Inc. (Prior Sponsor); J.P. Morgan

Partners, LLC (Prior Sponsor); Bank of America Capital

Investors (Prior Sponsor); Peterson Partners LP (Prior

Sponsor); TowerBrook Capital Partners, L.P. (Prior

Sponsor); Weston Presidio (Prior Sponsor); NMS Capital

Management LLC (Prior Sponsor); Quantum Industrial

Partners LDC (Current Sponsor); CCMP Capital Advisors,

Building Materials CCC+ B- B- B B

LLC (Prior Sponsor)

Advent International Corporation (Prior Sponsor);

BancBoston Capital, Inc. (Current Sponsor); GE Equity

Transportation B- B- B- B- B

(Prior Sponsor); Littlejohn & Co. LLC (Prior Sponsor) Automotive

Consumer

B- B- B- B- B

Products CCC+ CCC+ CCC+ B- B-

Intertape Polymer Group Inc. Miralta Capital Inc. (Current Sponsor)

ION Media Networks Inc.

Jacuzzi Brands Corp. Apollo Management, L.P. (Current Sponsor)

JetBlue Airways Corporation

Keystone Automotive Operations

Inc.

KIK Custom Products Inc. CI Capital Partners LLC (Current Sponsor)

Kinetek Holdings Corp.

Krispy Kreme Doughnuts Inc.

Lazy Days' R.V. Center Inc.

TCW/Crescent Mezzanine Partners, L.L.C. (Current

Sponsor); The Jordan Company, L.P. (Current Sponsor);

JZ Capital Partners Limited (LSE:JZCP) (Current Sponsor) Capital Goods

Hunter Hall International Ltd. (ASX:HHL) (Current

Sponsor); MGL Asset Management, L.L.C. (Pending

B- B- B B B

Sponsor)

Bruckmann, Rosser, Sherrill & Co. L.L.C. (Current

Sponsor); PPM America, Inc (Prior Sponsor); Alliance

Retail/Restaurants B- B- B- B- NR

Holdings, Inc. (Prior Sponsor) Automotive CC CC CCC+ B B+

Lear Corp.

Bain Capital, LLC (Prior Sponsor); Exor America (Prior

Sponsor); Goldman Sachs Group, Merchant Banking

Division (Prior Sponsor); Lehman Brothers, Private Equity

Division (Prior Sponsor); The Cypress Group (Prior

Sponsor); Icahn Associates Corp. (Prior Sponsor)

GTCR Golder Rauner, LLC (Prior Sponsor); The Carlyle

Automotive CCC+ CCC+ B B+ B

LifeCare Holdings Inc.

Group (Current Sponsor)

Arcapita Inc. (Prior Sponsor); Desai Capital Management,

Inc. (Prior Sponsor); Sprout Group (Prior Sponsor); ZS

Fund L.P. (Prior Sponsor); Arcapita Bank, Corporate

Health Care CCC+ CCC+ CCC+ CCC+ B-

Loehmann's Holdings Inc.

Investment Arm (Prior Sponsor) Retail/Restaurants

Chemicals,

Packaging &

CCC+ CCC+ CCC+ CCC+ B

Court Square Capital Partners (Current Sponsor); Weston Environmental

MacDermid Inc.

Presidio (Current Sponsor)

Soros Fund Management LLC (Current Sponsor);

Services B- B B B B

Mastro's Restaurants LLC

Kinderhook Industries (Current Sponsor) Retail/Restaurants

Media &

CCC B- B- B- B-

McClatchy Co. (The) Constitution Equity Associates L.P. (Prior Sponsor) Entertainment CCC+ CCC+ B BB- BB+

MEGA Brands Inc.

J.P. Morgan Partners, LLC (Prior Sponsor); The

Blackstone Group, Private Equity Group (Prior Sponsor)

Consumer

Products CCC CCC B- B B+

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 8


Table 2: Weakest Links With Private Equity Involvement (Continued)

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 9


Entity Ownership Status Sector

Metals, Mining &

13-May-09

Prior Rating

-90 Days 180 Days 1 Year 2 Years

Metals USA Holdings Corp. Apollo Management, L.P. (Current Sponsor)

Permira Advisers Ltd. (Prior Sponsor); Francisco Partners

Management LLC (Current Sponsor); EdgeStone Capital

Partners Inc. (Current Sponsor); Wesley Clover

Corporation (Current Sponsor); Morgan Stanley Principal

Steel CCC+ B- B- B- B

Mitel Networks Corporation Investments, Inc. (Current Sponsor) High Technology

Chemicals,

Packaging &

B- B B B NR

Momentive Performance Materials

Environmental

Inc. Apollo Management, L.P. (Current Sponsor)

Leonard Green & Partners, L.P. (Current Sponsor); PPM

America Capital Partners, LLC (Current Sponsor);

TCW/Crescent Mezzanine Partners, L.L.C. (Current

Sponsor); Prudential Capital Group (Current Sponsor);

York Street Capital Partners, LLC (Current Sponsor); CMS

Services CCC B- B B B

Small-Cap Private Equity Fund (Prior Sponsor); DAG Media &

Motorsport Aftermarket Group Inc. Private Equity (Current Sponsor)

American Capital, Ltd. (NasdaqGS:ACAS) (Current

Entertainment CCC+ B- B- B- B

National Processing Co. Group Inc. Sponsor) High Technology B- B B B B

NBC Acquisition Corp.

Haas Wheat & Partners (Prior Sponsor); Olympus Partners

(Prior Sponsor); Weston Presidio (Current Sponsor)

General Electric Pension Trust (Current Sponsor);

Odyssey Investment Partners, LLC (Prior Sponsor);

TCW/Crescent Mezzanine Partners, L.L.C. (Prior

Sponsor); Lightyear Capital, LLC (Current Sponsor);

Retail/Restaurants B- B- B- B- B-

Neff Corp.

Norwest Equity Partners (Current Sponsor)

Brown Brothers Harriman & Co. Investment Arm (Prior

Sponsor); GTCR Golder Rauner, LLC (Prior Sponsor);

Lexington Partners (Prior Sponsor); Oaktree Capital

Management, L.P. (Prior Sponsor); AIG Investments (Prior

Sponsor); Diamond Castle Holdings, LLC (Current

Capital Goods B- B- B B B+

NES Rentals Holdings Inc. Sponsor)

ABRY Partners, LLC (Prior Sponsor); Court Square Capital

Capital Goods CC B+ B+ B+ B+

Partners (Current Sponsor); GSC Investment Corp Media &

Network Communications Inc. (NYSE:GNV) (Current Sponsor)

Goldman Sachs Group, Merchant Banking Division

(Current Sponsor); Weston Presidio (Current Sponsor);

Thomas Weisel Capital Management, LLC (Prior Sponsor);

Alta Communications (Current Sponsor); Tailwind

Management LP (Current Sponsor); Trinity Hunt Partners

Entertainment B- B B B B

(Prior Sponsor); Peppertree Capital Management, Inc. Media &

NextMedia Operating Inc.

(Prior Sponsor)

Entertainment CCC B- B- B- B

NIS Group Co., Ltd. TPG (Current Sponsor)

Kelso & Company (Prior Sponsor); Thomas H. Lee

Finance Co. CCC- B B+ BB- BB+

Partners, L.P. (Current Sponsor); PCG Capital Partners Forest Products &

NTK Holdings Inc.

LLC (Prior Sponsor)

Building Materials CC B- B- B- B

NXP B.V.

OPTI Canada Inc

Oriental Trading Co. Inc.

Palm Inc.

Panavision Inc.

Penhall International Corp.

Penton Business Media Holdings,

Inc.

AlpInvest Partners N.V. (Current Sponsor); Apax Partners

Worldwide LLP (Current Sponsor); Bain Capital, LLC

(Current Sponsor); Kohlberg Kravis Roberts & Co. (Current

Sponsor); Lexington Partners (Prior Sponsor); Silver Lake

(Current Sponsor); TCW/Crescent Mezzanine Partners,

L.L.C. (Prior Sponsor); AXA Private Equity (Prior Sponsor);

Partners Group Private Equity (Prior Sponsor); AIG Private

Equity AG (SWX:APEN) (Prior Sponsor); Stockwell Capital

LLC (Current Sponsor); Bain Capital Private Equity (Prior

Sponsor); KKR PEI Investments L.P (Current Sponsor) High Technology CCC+ CCC B- B+ BB

Scotiabank Private Equity Investments (Current Sponsor);

Gardiner Group Capital (Current Sponsor); Richardson

Capital Limited (Current Sponsor)

Oil & Gas

Exploration &

Production B- B+ BB- BB- BB

Apollo Management, L.P. (Current Sponsor); Brentwood

Associates (Prior Sponsor); The Cambria Group (Current

Sponsor); J.H. Whitney & Co., LLC (Current Sponsor);

Lexington Partners (Current Sponsor); Bank of America

Capital Investors (Current Sponsor); PNC Equity Partners

(Current Sponsor); The Carlyle Group (Current Sponsor);

Allied Capital Corporation (NYSE:ALD) (Current Sponsor);

Banc of America Capital Investors, L.P. prior to merger with

NationsBank Capital Investors (Prior Sponsor); PNC

Mezzanine Capital (Current Sponsor)

Benchmark Capital (Prior Sponsor); Merrill, Pickard,

Anderson & Eyre (Prior Sponsor); Newtek Ventures (Prior

Sponsor); Sutter Hill Ventures (Prior Sponsor); AVI Capital,

L.P. (Prior Sponsor); Horizon Ventures (Prior Sponsor);

Janus Capital Management LLC (Prior Sponsor); Time

Warner Investments (Prior Sponsor); 550 Digital Media

Ventures Inc. (Prior Sponsor); EDS Ventures (Prior

Sponsor); Innolion (Prior Sponsor); Elevation Partners

(Current Sponsor); Benhamou Global Ventures LLC (Prior

Retail/Restaurants CCC+ CCC+ CCC+ B- B

Sponsor) High Technology CCC CCC+ B- B NR

Boston Ventures Management, Inc. (Prior Sponsor);

Warburg Pincus LLC (Prior Sponsor); MacAndrews &

Forbes Holdings, Inc. (Current Sponsor)

Media &

Entertainment CCC CCC+ B- B- B-

Bruckmann, Rosser, Sherrill & Co. L.L.C. (Prior Sponsor);

Code Hennessy & Simmons, L.L.C. (Current Sponsor);

National Christian Charitable Foundation, Investment Arm

(Current Sponsor)

Apollo Management, L.P. (Current Sponsor); Lexington

Partners (Current Sponsor); Wasserstein & Co., LP

(Current Sponsor); Highfields Capital Management, LP

(Current Sponsor); MidOcean Partners (Current Sponsor);

BlackRock Kelso Capital Corporation (NasdaqGS:BKCC)

Capital Goods B- B B B B

(Current Sponsor); GSC Investment Corp (NYSE:GNV) Media &

(Current Sponsor)

Entertainment

Oil & Gas

Exploration &

B- B- B B B

Production B- B- B B CCC+

PetroQuest Energy Inc EnCap Investments L.P. (Prior Sponsor)

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 10


Table 2: Weakest Links With Private Equity Involvement (Continued)

Entity Ownership Status Sector 13-May-09

Prior Rating

-90 Days 180 Days 1 Year 2 Years

Primus Guaranty Ltd. PCG Capital Partners LLC (Prior Sponsor) Bank CCC CCC BB BBB+ BBB+

Providence Service Corp.

QMG Holdings Inc.

Quality Distribution Inc.

Eos Partners, L.P. (Prior Sponsor); Petra Capital Partners,

LLC (Prior Sponsor); Harbert Mezzanine Partners (Prior

Sponsor); Highbridge Capital Management, LLC (Current

Sponsor); GLG Partners, Inc. (NYSE:GLG) (Current

Sponsor); HBK Investments L.P. (Current Sponsor);

Aristeia Capital, LLC (Current Sponsor); Polygon

Investment Partners LLP (Current Sponsor); CQS Cayman

Limited Partnership (Prior Sponsor); Fore Research &

Management, LP (Prior Sponsor); RG Capital Management

LP (Current Sponsor); Deutsche Bank AG (London), Asset

Management Arm (Current Sponsor); Castle Creek

Arbitrage, LLC (Current Sponsor); CQS (UK) LLP (Current

Sponsor) Health Care B- B- B+ B+ NR

Audax Group (Current Sponsor); FriedbergMilstein, LLC Media &

(Current Sponsor)

Apollo Management, L.P. (Current Sponsor); South Atlantic

Venture Funds (Prior Sponsor); Ballast Point Ventures,

Entertainment CCC+ B B B NR

L.P. (Prior Sponsor) Transportation B- B- B- B- B-

Quantum Corp.

CIVC Partners, L.P. (Prior Sponsor); Kleiner, Perkins,

Caufield & Byers (Prior Sponsor); Sutter Hill Ventures

(Prior Sponsor); Portage Venture Partners (Prior Sponsor)

BancBoston Capital, Inc. (Prior Sponsor); Burr, Egan,

Deleage & Co. (Prior Sponsor); Fulcrum Capital Group,

LLC (Prior Sponsor); Opportunity Capital Partners (Prior

Sponsor); Pacesetter Capital Group (Prior Sponsor);

Syncom Management Company, Inc. (Prior Sponsor); TSG

Capital Group (Prior Sponsor); Alta Communications (Prior

High Technology CC B- B B B

Sponsor); Allied Capital Corporation (NYSE:ALD) (Prior Media &

Radio One Inc.

Sponsor)

Entertainment

Consumer

B- B B B B+

Rafaella Apparel Group Inc. Cerberus Capital Management, L.P. (Current Sponsor)

Castle Harlan, Inc. (Prior Sponsor); DLJ Merchant Banking

Partners (Current Sponsor); Dubin Clark & Company, Inc.

(Prior Sponsor); Howard Industries, Inc. (Prior Sponsor);

Products CCC B- B- B B

RathGibson Inc.

Liberty Partners (Prior Sponsor) Capital Goods CCC+ B B B B

RDA Holding Co.

Realogy Corp.

Rite Aid Corp.

Safilo SpA

Sagittarius Restaurants LLC

Saks Inc.

Sbarro Inc.

Ripplewood Holdings, L.L.C. (Current Sponsor); Partners

Group Private Equity (Current Sponsor); Swiss Re

Alternative Investments (Prior Sponsor); GoldenTree Asset

Management, LP (Current Sponsor); Princess

Management Limited (Current Sponsor); Magnetar Capital,

LLC (Current Sponsor); J. Rothschild Group of Companies

(Current Sponsor); GSO Capital Partners LP (Current

Sponsor); Horizon21 Private Equity (Current Sponsor); Media &

Merrill Lynch Capital, Investment Arm (Prior Sponsor) Entertainment CCC B- B- B- B

Apollo Management, L.P. (Current Sponsor); Lexington Media &

Partners (Current Sponsor)

Leonard Green & Partners, L.P. (Current Sponsor);

American Century Investment Management Inc. (Prior

Entertainment CC CC CC B B+

Sponsor); Bessent Capital, LLC (Prior Sponsor) Retail/Restaurants B- B- B- B B

CSFB Private Equity (Current Sponsor); DLJ Merchant Consumer

Banking Partners (Current Sponsor)

Charlesbank Capital Partners, LLC (Current Sponsor);

Grotech Ventures (Current Sponsor); Leonard Green &

Partners, L.P. (Current Sponsor); Stockwell Capital LLC

Products B- B B+ BB- BB-

(Current Sponsor)

Apollo Management, L.P. (Prior Sponsor); Baugur Group

(Current Sponsor); Kingdom Holding Company

(SASE:4280) (Current Sponsor); Investcorp Bank BSC,

Retail/Restaurants B- B- B- B- B

Private Equity (Prior Sponsor)

MidOcean Partners (Current Sponsor); Arlon Capital

Retail/Restaurants B- B BB- BB- B+

Partners (Current Sponsor) Retail/Restaurants CCC+ CC CCC+ B- B-

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 11


Table 2: Weakest Links With Private Equity Involvement (Continued)

Entity Ownership Status

GTCR Golder Rauner, LLC (Prior Sponsor); Thoma

Cressey Bravo (Current Sponsor); Welsh, Carson,

Sector 13-May-09

Prior Rating

-90 Days 180 Days 1 Year 2 Years

Select Medical Corp.

Anderson & Stowe (Current Sponsor)

Bain Capital, LLC (Current Sponsor); Unitas Capital

Health Care B- B- B B B

Sensata Technologies B.V. (Current Sponsor) Capital Goods

Homebuilders/Real

CCC+ B B B+ B+

Standard Pacific Corp. MatlinPatterson Global Advisers LLC (Current Sponsor)

Court Square Capital Partners (Prior Sponsor); Trimaran

Estate Co. CCC B- B- B+ BB

Standard Steel LLC

Capital Partners (Current Sponsor) Capital Goods

Metals, Mining &

B- B+ B+ B+ B+

Stillwater Mining Co. Wexford Capital, LLC, Private Equity Arm (Prior Sponsor) Steel B- B- B+ B+ B+

Tenneco Inc. JPMP Capital, LLC (Prior Sponsor)

American Capital, Ltd. (NasdaqGS:ACAS) (Current

Sponsor); KRG Capital Partners, L.L.C (Prior Sponsor);

Midwest Mezzanine Funds (Prior Sponsor); Key Principal

Automotive B- B+ BB- BB- BB-

Partners Corp. (Prior Sponsor); Arcapita Bank, Corporate Forest Products &

Tensar Corp. (The)

Investment Arm (Current Sponsor)

Building Materials B- B- B B B-

Titan Petrochemicals Group Ltd. Warburg Pincus LLC (Current Sponsor) Transportation

Oil & Gas

CCC B- B- B B+

The Carlyle Group (Current Sponsor); Riverstone Holdings Exploration &

Titan Specialties Ltd.

LLC (Current Sponsor)

Production B- B- B- B- B-

DLJ Merchant Banking Partners (Current Sponsor); H.I.G.

Capital, LLC (Prior Sponsor); Midwest Mezzanine Funds

(Prior Sponsor); TGF Management Corp. (Prior Sponsor);

MVC Capital Inc. (NYSE:MVC) (Current Sponsor); National

City Equity Partners, LLC (Prior Sponsor); Suntrust Equity Oil & Gas

Funding, LLC (Prior Sponsor); GulfStar Merchant Banking, Exploration &

Total Safety U.S. Inc.

Ltd. (Prior Sponsor)

Bain Capital, LLC (Prior Sponsor); Bruckmann, Rosser,

Sherrill & Co. L.L.C. (Current Sponsor); Bank of America

Capital Investors (Prior Sponsor); Swander Pace Capital

Production B- B- B- B- B-

(Prior Sponsor); Audax Group (Prior Sponsor); MidOcean Consumer

totes Isotoner Corp.

Partners (Current Sponsor)

Products B- B B B B

Bain Capital, LLC (Current Sponsor); Goldman Sachs Forest Products &

Treofan Holdings GmbH

Group, Merchant Banking Division (Current Sponsor) Building Materials

Oil & Gas

CC CCC CCC+ CCC+ NR

First Reserve Corporation (Current Sponsor); Bank of Exploration &

Turbo Alpha Ltd.

Scotland Equity Investments (Prior Sponsor)

Production B- B+ B+ B+ NR

Main Street Capital Corporation (NasdaqGS:MAIN) (Prior Forest Products &

U.S. Concrete Inc.

Sponsor)

Building Materials B- B B B+ B+

UCI Holdco Inc. The Carlyle Group (Prior Sponsor) Automotive B- B- B B B

United Site Services Inc.

Univision Communications Inc.

CSFB Private Equity (Current Sponsor); DLJ Merchant

Banking Partners (Current Sponsor); Odyssey Investment

Partners, LLC (Prior Sponsor); TCW/Crescent Mezzanine

Partners, L.L.C. (Current Sponsor); Audax Group (Prior

Sponsor); RBC Capital Partners (Prior Sponsor); Allied

Capital Corporation (NYSE:ALD) (Prior Sponsor); GSC

Investment Corp (NYSE:GNV) (Current Sponsor)

Rader Reinfrank & Co., L.L.C. (Prior Sponsor); Madison

Dearborn Partners, LLC (Current Sponsor); Providence

Equity Partners LLC (Current Sponsor); TPG (Current

Sponsor); Thomas H. Lee Partners, L.P. (Current

Sponsor); Partners Group Private Equity (Current

Sponsor); Saban Capital Group, Inc. (Current Sponsor);

Stockwell Capital LLC (Current Sponsor)

Chemicals,

Packaging &

Environmental

Services CCC+ CCC+ B- B- NR

Media &

Entertainment B- B- B- B- B

US Airways Group Inc.

TPG (Current Sponsor); Tudor Investment Corporation

(Prior Sponsor); Wellington Management Company L.L.P.

(Current Sponsor); PAR Capital Management, Inc. (Current

Sponsor); Peninsula Capital Advisors, LLC (Prior Sponsor);

Eastshore Aviation, LLC (Prior Sponsor) Transportation B- B- B- B- B-

VAC Holding GmbH One Equity Partners LLC (Current Sponsor)

CIVC Partners, L.P. (Prior Sponsor); DLJ Merchant

Banking Partners (Prior Sponsor); Morgenthaler (Prior

Sponsor); Odyssey Investment Partners, LLC (Current

Sponsor); PNC Equity Partners (Prior Sponsor); Primus

(Prior Sponsor); TCW/Crescent Mezzanine Partners,

Capital Goods B- B- B B B

L.L.C. (Current Sponsor); The Carlyle Group (Current Chemicals,

Sponsor); BlackRock Kelso Capital Corporation

Packaging &

(NasdaqGS:BKCC) (Current Sponsor); PNC Mezzanine Environmental

Wastequip Inc.

Capital (Prior Sponsor)

Services

Consumer

CCC+ CCC+ B B B

Wm. Bolthouse Farms Inc. Madison Dearborn Partners, LLC (Current Sponsor)

Perseus, L.L.C. (Current Sponsor); EdgeStone Capital

Partners Inc. (Current Sponsor); TD Capital Mezzanine

Partners (Prior Sponsor); The Renaissance Group, LLC

Products B- B B B B

(Current Sponsor); GF Private Equity Group, LLC (Current Media &

Workflow Management Inc. Sponsor)

Apax Partners Worldwide LLP (Current Sponsor); J.P.

Morgan Partners, LLC (Prior Sponsor); CIBC Capital

Partners (Prior Sponsor); Allianz Capital Partners GmbH

Entertainment CCC- CC CCC B- BB-

Xerium Technologies Inc.

(Prior Sponsor) Capital Goods B- B- B- CCC+ B+

* Data as of May 13, 2008.

Source: Standard & Poor’s Global Fixed Income Research; Standard & Poor’s Capital IQ.

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 12


Table 3: Defaulted Entities In 2009*

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

U.S. Shipping Partners

Aetna Life Insurance Company, Landmark Partners,

USA Transportation 1/6/2009

L.P.

Alerian Capital Management, LLC, Inc., Massachusetts Mutual Life

Sterling Investment Partners (Douglas Insurance Co., PPM America Capital

Newhouse), The Blackstone Group,

Private Equity Group (David Foley),

Zimmer Lucas Capital, LLC

Partners, LLC

Penn Treaty Network

America Insurance Co.

Triple Crown Media

LLC

Merisant Worldwide

Inc.

Broadfield Capital, Conus Partners, BayStar Capital, JMG Triton Offshore

Inc., JMG Capital Management Fund Ltd.

LLC, Lampe, Conway & Co.

LLC, LibertyView Capital Management,

Inc., Pacific Assets Management,

LLC, Parsow Partnership

Ltd., Perseus, L.L.C., Whitebox

Advisors, LLC

Triple Crown Media Inc.

(OTCPK:TCMI) (Current Parent)

Hamilton Lane Advisors, Private Equity

Arm, Pegasus Capital Advisors, L.P.

Nortel Networks Corp. BCE, Inc. (TSX:BCE), GE

Equity, Georgia Electronic Design

Center, J.P. Morgan Partners,

LLC, Tredegar Investments Inc.

Spansion Inc. Franklin Advisory Services, LLC (2.48); Franklin Fujitsu Ltd. (TSE:6702) ; AMD

Advisers, Inc. (2.48); Renaissance

Investments, Inc.

Technologies Corp. (4.10); Barclays Global

Investors, National Association (4.20); Jennison

Associates LLC (9.48); Janus Capital

Management LLC (4.93); RiverSource

Investments, LLC (9.48); Donald Smith & Co.,

Inc. (8.39); Columbia Management Advisors,

Inc. (OTCPK:CLMB) (2.39); Fidelity

Management & Research Company (2.34)

USA Insurance 1/7/2009

USA Leisure Time / Media 1/8/2009

USA Consumer / Service

Sector

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 13

1/13/2009

Canada Telecommunications 1/14/2009

USA High technology /

Computers / Office

Equipment

1/15/2009

Black Gaming LLC USA Leisure Time / Media 1/16/2009

Young Broadcasting

Inc.

The Vanguard Group, Inc. (1.81); Dimensional

Fund Advisors LP (1.84); T. Rowe Price

Associates, Inc. (2.31); Aspen Advisors LP,

Asset Management Arm (2.71); Westport Asset

Management, Inc. (4.22); Gabelli Funds, LLC

(3.16); J.P. Morgan Ventures Corporation,

Asset Management Arm (4.36); TCS Capital

Management, LLC (6.29); Concordia Advisors

L.L.C. (7.49); GAMCO Asset Management, Inc.

(17.27)

EuroFresh Inc. Bruckmann, Rosser, Sherrill & Co.

L.L.C. ; Bank of America Capital

Investors ; GSC Investment Corp

(NYSE:GNV)

Simmons Company Thomas H. Lee Partners, L.P. ;

Thomas H. Lee Equity Partners V, L.P.

; Simmons Company (Current Parent)

Wesray Capital Corp.; Fenway

Partners ; Stonington Partners, Inc. ;

Merrill Lynch Capital Partners Inc. ;

Investcorp Bank BSC, Private Equity

Foamex L.P. D.E. Shaw Laminar Portfolios, Apollo Investment Fund II, L.P., Apollo

LLC, Goldman Sachs Group, Merchant Management, L.P., Sunrise Partners

Banking Division, Sigma Capital Limited Partnership, The Bank Of

Management, LLC

Nova Scotia (TSX:BNS), Trace

International Holdings, Inc.

SmurfitStone

Container Corp.

Wellington Management Company L.L.P.

(11.87); Neuberger Berman, LLC (9.84); Sasco

Capital Inc. (2.02); J. & W. Seligman & Co.

Incorporated (2.30); Barclays Global Investors,

National Association (2.51); The Vanguard

Group, Inc. (2.68); T. Rowe Price Associates,

Inc. (4.76); Fidelity Management & Research

Company (7.54); DWS Investments Gmbh

(6.68); AllianceBernstein L.P. (4.43)

Metalmark Capital LLC ; Smurfit Kappa

Group plc (ISE:SK3) ; Morgan Stanley

Leveraged Equity Fund II, L.P.

USA Leisure Time / Media 1/20/2009

USA Consumer / Service

Sector

USA Consumer / Service

Sector

USA Health Care /

Chemicals

USA Forest and Building

Products /

Homebuilders

JSEC Inc. USA Forest and Building

Products /

Homebuilders

1/26/2009

Bonten Media Group

Diamond Castle Holdings, LLC ; Landmark Communications, Inc. (Prior USA Leisure Time / Media 1/30/2009

Inc.

Diamond Castle Partners Fund IV, L.P. Parent)

Scottish Annuity & Life

Insurance Co.

(Cayman) Ltd.

Cayman

Islands

1/20/2009

1/21/2009

1/23/2009

1/26/2009

Insurance 1/30/2009


Table 3: Defaulted Entities In 2009* (Continued)

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

Vitro S.A.B. de C.V. Mexico Aerospace /

Automotive / Capital

Goods / Metal

2/2/2009

ASAT Holdings Ltd. Crane Asset Management, LLC (0.025); SG Olympus Capital Holdings Asia ; QPL J.P. Morgan Partners, LLC ; Orchid Hong Kong Aerospace / 2/2/2009

Asset Management Alternative Investments International Holdings Ltd. (SEHK:243) Asia Group Management, Ltd. ;

Automotive / Capital

(0.006); UBS Securities LLC, Investment Arm ; Asia Opportunity Fund ; Unitas Tredegar Investments Inc.

Goods / Metal

Indalex Holding Corp.

(0.007); Anima S.G.R.p.A (0.001); Renaissance Capital

Technologies Corp. (0.278); Banc of America

Securities LLC, Asset Management Arm

(0.575); Suntrust Banks Of Florida, Asset

Management Arm (0.071); Schneider Capital

Management Corporation (0.052); J.P. Morgan

Partners, LLC (26.35); Credit Suisse Securities

(USA) LLC, Investment Arm (0.361)

Indalex Holdings Finance Inc. (Current

USA Energy and Natural 2/3/2009

Parent)

Resources

Station Casinos Inc. ProFund Advisors LLC (0.000); STB Asset Colony Capital, LLC ; Crown Limited

USA Leisure Time / Media 2/4/2009

Management Co., Ltd. (0.003); Standard Life (ASX:CWN) ; Colony Investors VIII,

Investments Limited (0.001); Nikko Asset

Management Co. Ltd. (0.002); Royal London

Asset Management Limited (0.008)

L.P.

Spectrum Brands Inc. Deutsche Investment Management Americas Thomas H. Lee Equity Partners IV, Thomas H. Lee Partners, L.P. ; USA Consumer / Service 2/4/2009

Inc. (9.78); Thomas H. Lee Partners, L.P. L.P.

Thomas H. Lee Equity Partners III,

Sector

(22.84); Harbert Management Corporation

(9.85); Artis Capital Management, L.P. (9.66);

Adage Capital Management, L.P. (7.24);

Barclays Global Investors, National Association

(4.61); Dimensional Fund Advisors LP (3.95);

Columbia Management Advisors, Inc.

(OTCPK:CLMB) (2.04); Renaissance

Technologies Corp. (2.04); The Vanguard

Group, Inc. (2.27)

L.P.

Rail Leasing Russia Financial Institutions 2/10/2009

Akerys Holdings S.A. Qualis SCA iXEN Partners ; iXEN, FCPR France Real Estate 2/10/2009

Muzak Holdings LLC USA Leisure Time / Media 2/12/2009

Aleris International Inc. TPG ; TPG Partners V, L.P. USA Aerospace /

Automotive / Capital

Goods / Metal

2/12/2009

Pliant Corp. New York Life Capital Partners, LLC ;

CCMP Capital Advisors, LLC

J.P. Morgan Partners, LLC ; Wachovia

Capital Partners, Inc. ; Huntsman

Corp. (NYSE:HUN) (Prior Parent);

WCP Fund I, L.P. ; Northwestern

Investment Management Company,

LLC

USA Health Care /

Chemicals

Castle HoldCo 4 Apollo Management, L.P. Cayman

Islands

Real Estate 2/17/2009

BearingPoint Inc. Friedman Fleischer & Lowe, LLC Cisco Systems, Inc.

USA High technology / 2/18/2009

(NasdaqGS:CSCO)

Computers / Office

Equipment

American

Fenway Partners ; The Carlyle Group ; Castle Harlan, Inc. ; Castle Harlan USA Consumer / Service 2/27/2009

Achievement Corp.

Carlyle Mezzanine I, L.P. ; AAC Group Partners III, L.P. ; Castle Harlan

Sector

Holding Corp. (Current Parent) Partners II, L.P.

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 14

2/12/2009


Table 3: Defaulted Entities In 2009* (Continued)

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

Independencia S.A. BNDESPARBNDES Participações,

Brazil Consumer / Service 3/2/2009

S.A (Pending Parent/Investor)

Sector

Nadra Bank East Capital Private Equity AB ; East

Capital Financials Fund

Ukraine Financial Institutions 3/2/2009

Milacron Inc. Pzena Investment Management, Inc

Mizuho International plc ; Glencore USA Aerospace / 3/10/2009

(NYSE:PZN) (4.47); Renaissance Technologies

Finance AG

Automotive / Capital

Corp. (4.42); Fine Capital Partners, L.P. (5.34);

David J. Greene and Company, LLC (4.71);

Shah Capital Management (10.13);

Dimensional Fund Advisors LP (5.73); Cannell

Capital LLC (1.36); The Vanguard Group, Inc.

(3.22); Regiment Capital Advisors, LLC (3.32);

OTA Advisors LLC (0.995)

Goods / Metal

Fleetwood Enterprises

Inc.

Capital World Investors (1.27); TCW Asset

Management Company (1.22); Rutabaga

Capital Management LLC (1.40); Sleep Zakaria

& Co (1.89); Barclays Global Investors, National

Association (1.56); Marathon Asset

Management, LLP (2.57); Fidelity Management

& Research Company (3.08); Wells Capital

Management Incorporated (4.52); SLS Capital

Management, LLC (3.63); First Pacific Advisors,

Inc. (4.01)

Canwest Media Inc. Fairfax Financial Holdings Ltd.

(TSX:FFH), RBC Capital Partners

Primus

Telecommunications

Group Inc.

Asia Aluminum

Holdings Ltd.

General Growth

Properties, Inc.

True Temper Sports

Inc.

Morgan Stanley Investment

Management Inc. ; Mondrian

Investment Partners Limited ;

Longreach ; Longreach Capital

Partners 1 ; FIL Limited

Adelante Capital Management, L.L.C. (1.49);

APG Investments US Inc. (1.80); Wellington

Management Company L.L.P. (2.39); State

Street Global Advisors, Inc. (3.43); RREEF

America L.L.C. (2.99); Cohen & Steers Capital

Management, Inc. (3.67); General Trust

Company (22.30); Barclays Global Investors,

National Association (4.12); The Vanguard

Group, Inc. (4.71); Fidelity Management &

Research Company (5.05)

Acqua Wellington Asset Management

LLC ; Acqua Wellington Private

Placement Fund, Ltd.

CIBC Capital Partners, SunTimes

Media Group Inc. (OTCPK:SUTM.Q)

AIG Capital Partners, Inc. Anita Kaufman Family Partnership,

L.P., HewlettPackard Company

(NYSE:HPQ), Inktomi

Corporation, Oak Investment

Partners, Quantum Industrial

Holdings, The Chatterjee

Group,TowerBrook Capital Partners,

L.P., Warburg Pincus Investors,

L.P., Warburg Pincus LLC

USA Forest and Building

Products /

Homebuilders

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 15

3/11/2009

Canada Leisure Time / Media 3/16/2009

USA Telecommunications 3/16/2009

China Aerospace /

Automotive / Capital

Goods / Metal

3/17/2009

Fidelity Investments USA Real Estate 3/17/2009

Gilbert Global Equity Partners ; Canterbury Capital Partners ;

TCW/Crescent Mezzanine Partners, Cornerstone Equity Investors, LLC ;

L.L.C. ; Gilbert Global Equity Partners, Goldman Sachs Group, Merchant

L.P. ; Canterbury Capital Mezzanine II,

L.P. ; True Temper Corporation

(Current Parent)

Fairchild Corp. HSBC Trinkaus & Burkhardt AG

(BST:TUB), Sg Phoenix Ventures

Llc, Stadtsparkasse Düsseldorf

Community

Distributors Inc.

Chemtura Corp. The Vanguard Group, Inc. (2.77); Trian Fund

Management, L.P. (4.09); Brandes Investment

Partners, L.P. (3.33); ICC Capital Management,

Inc. (2.41); State Street Global Advisors, Inc.

(3.28); Fidelity Management & Research

Company (14.61); GoldenTree Asset

Management, LP (6.87); Lord, Abbett & Co.

LLC (8.66); Barclays Global Investors, National

Association (4.98); Wellington Management

Company L.L.P. (6.79)

Bite Finance

International B.V.

Banking Division ; The Black & Decker

Corporation (NYSE:BDK) ; Goldman

Sachs Private Equity Partners, L.P. ;

Goldman Sachs Private Equity Group

CDI Group, Inc. BancBoston Capital, Inc., Deutsche

Beteiligungs AG (DB:DBA), Harvest

Partners International, L.P., Harvest

Partners, LLC (Harvey Mallement, Ira

Kleinman), MidMarket Buyouts, Tucker

Anthony Cleary Gull

AXA Private Equity, Mid Europa

Partners LLP

USA Consumer / Service

Sector

3/18/2009

USA Leisure Time / Media 3/18/2009

USA Consumer / Service

Sector

USA Health Care /

Chemicals

3/18/2009

3/19/2009

Lithuania Telecommunications 3/19/2009


Table 3: Defaulted Entities In 2009* (Continued)

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

U.S. Central Federal

Credit Union

USA Financial Institutions 3/23/2009

Western Corporate

Federal Credit Union

USA Financial Institutions 3/23/2009

BILO LLC Lone Star Funds Ahold U.S.A., Inc. (Prior Parent) USA Consumer / Service 3/24/2009

Sector

Industrias Unidas S.A.

Grupo IUSA, S.A. de C.V. (Current

Mexico Aerospace / 3/26/2009

de C.V.

Parent)

Automotive / Capital

Goods / Metal

Freescale

Semiconductor Inc.

Charter

Communications Inc.

Sensata Technologies

B.V.

AbitibiConsolidated

Inc.

Ply Gem Industries

Inc.

Battery Ventures ; Lexington Partners ; Permira Advisers Ltd. ; TPG ; The

SL Capital Partners LLP ; AXA Private Blackstone Group, Private Equity

Equity ; AIG Private Equity AG Group ; The Carlyle Group ; Motorola

(SWX:APEN) ; GIC Special

Inc. (NYSE:MOT) (Prior Parent); AIG

Investments ; HBK Private Equity ; Investments ; AIG Horizon Partners

Freescale Semiconductor Holdings V, Fund, L.P. ; Carlyle Japan Partners,

Inc. (Current Parent); Rosemont L.P. ; Carlyle European Capital

Solebury Capital Management LLC Partners II, L.P. ; Carlyle Partners IV,

L.P. ; Blackstone Capital Partners V,

L.P. ; TPG Partners V, L.P. ; Permira

IV ; Carlyle Asia Partners II, L.P.

USA High technology /

Computers / Office

Equipment

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 16

3/27/2009

Vulcan Capital (Lance Conn) BancBoston Capital, Inc., Catalyst

Investors, Charterhouse Equity

Partners II, L.P., Charterhouse Group,

Inc., Cordova Ventures, Crestview

Partners, L.P., Kelso & Company, Q

Investments, L.P., Quadrangle Capital

Partners, TD Capital, TD Capital

Communications Partners, The

Blackstone Group, Private Equity

Group

USA Leisure Time / Media 3/27/2009

Bain Capital, LLC ; Unitas Capital ;

Sensata Technologies B.V. (Current

Parent)

Barclays Global Investors, National Association Fairfax Financial Holdings Ltd.

(3.66); Lord, Abbett & Co. LLC (13.89); T. Rowe (TSX:FFH) ; Steelhead Partners, LLC

Price Associates, Inc. (5.53); Bessemer (Pending Parent/Investor)

Investment Management LLC (3.98); Wellington

Management Company L.L.P. (3.84);

Tradewinds NWQ Global Investors, LLC (8.76);

Norges Bank Investment Management (6.29);

Global Pension Fund (Norway) (3.79); Third

Avenue Management, LLC (5.49); NWQ

Investment Management Company, LLC (6.39)

Idearc Inc. Capital Research and Management Company

(9.98); Putnam Investment Management, LLC

(5.08); Lord, Abbett & Co. LLC (3.71); Capital

Research Global Investors (8.33); Hotchkis and

Wiley Capital Management, LLC (10.43); Harris

Associates L.P. (4.92); AllianceBernstein L.P.

(4.96); Lazard Asset Management LLC (5.57);

Renaissance Technologies Corp. (3.34); The

Vanguard Group, Inc. (3.31)

Riviera Holdings Corp. Chesapeake Partners Management Co., Inc.

(2.91); Citigroup Inc., Asset Management Arm

(1.81); M&I Investment Management Corp.

(5.03); Riviera Holdings Corp., ESOP (5.73);

Ramsey Asset Management, LLC (4.89); D. E.

Shaw Investment Management, L.L.C. (9.57);

Barclays Global Investors, National Association

(3.65); Starwood Real Estate Securities (7.16);

Arrow Capital Management, LLC (5.17);

Plainfield Asset Management LLC (9.08)

CI Capital Partners LLC ; Ply Gem

Holdings, Inc (Current Parent)

Texas Instruments Inc. (NYSE:TXN)

(Prior Parent)

Netherlands Aerospace /

Automotive / Capital

Goods / Metal

3/31/2009

Canada Forest and Building

Products /

Homebuilders

3/31/2009

Nortek Inc. (Prior Parent) USA Forest and Building

Products /

Homebuilders

3/31/2009

Verizon Communications Inc.

(NYSE:VZ) (Prior Parent)

USA Leisure Time / Media 3/31/2009

USA Leisure Time / Media 3/31/2009

MediaNews Group Inc. Hearst Corporation USA Leisure Time / Media 3/31/2009


Table 3: Defaulted Entities In 2009* (Continued)

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

United Subcontractors

Wind Point Partners ; Citigroup Private

USA Forest and building 4/1/2009

Inc.

Equity ; Teachers' Private Capital ;

products /

Wind Point Partners V, L.P. ;

Northwestern Investment Management

Company, LLC ; Citigroup Mezzanine

Partners I, L.P. ; Monroe Capital LLC

homebuilders

J.G. Wentworth LLC JLL Partners USA Financial Institutions 4/1/2009

155 East Tropicana

LLC

Thornburg Mortgage

Inc.

Panolam Industries

International Inc.

MatlinPatterson Global Advisers LLC Thornburg Mortgage Securities

Corporation

Genstar Capital, LLC ; The Sterling The Carlyle Group ; Genstar Capital

Group, L.P. ; Genstar Capital Partners Partners II, L.P. ; Carlyle Partners III,

IV, L.P.

L.P. ; Panolam Industries Holdings,

Inc. (Prior Parent)

USA Leisure Time / Media 4/1/2009

USA Financial Institutions 4/1/2009

USA Forest and building

products /

homebuilders

NXP B.V. AlpInvest Partners N.V. ; Apax Lexington Partners ; TCW/Crescent Netherlands High technology /

Partners Worldwide LLP ; Bain Capital, Mezzanine Partners, L.L.C. ; AXA

computers / office

LLC ; Kohlberg Kravis Roberts & Co. ; Private Equity ; Partners Group Private

equipment

Silver Lake ; Koninklijke Philips Equity ; AIG Private Equity AG

Electronics NV (ENXTAM:PHIA) ; KKR (SWX:APEN) ; Silver Lake Partners II,

European Buyout Fund II, L.P. ; L.P. ; Bain Capital Fund VIII, L.P. ;

Stockwell Capital LLC ; KKR Private Bain Capital Fund IX, L.P. ; Bain

Equity Investors, L.P. (ENXTAM:KPE) ; Capital CoInvestment Fund IX, L.P. ;

KKR PEI Investments L.P

Partners Group Global Opportunities

Limited (LSE:PGGO) ; Bain Capital

Private Equity

Nexstar Broadcasting

Group Inc.

Loeb Partners Corp. (1.14); The Vanguard

Group, Inc. (1.35); TCS Capital Management,

LLC (2.06); Renaissance Technologies Corp.

(3.21); ABRY Partners, LLC (12.28); Barclays

Global Investors, National Association (1.89);

Brigade Capital Management (3.72); Columbia

Management Advisors, Inc. (OTCPK:CLMB)

(1.81); Fidelity Management & Research

Company (6.54); Act II Capital (2.06)

ABRY Partners, LLC ; Bank of America

Capital Investors ; ABRY Broadcast

Partners II, L.P. ; ABRY Broadcast

Partners III, L.P.

Polymer Holdings LLC TPG ; TPG Partners III,L.P. ; TPG

Partners IV, L.P. ; TJ Chemical

Holdings, LLC (Current Parent)

Rhodes Companies

LLC (The)

Ford Motor Co. Wellington Management Company L.L.P.

(5.61); Brandes Investment Partners, L.P.

(5.47); Putnam Investment Management, LLC

(0.918); Fidelity Management & Research

Company (1.15); Victory Capital Management

Inc. (1.19); RiverSource Investments, LLC

(1.20); Capital Research Global Investors

(1.53); Barclays Global Investors, National

Association (2.08); State Street Global

Advisors, Inc. (2.14); The Vanguard Group, Inc.

Noranda Aluminum

Holding Corp.

Cinram International

Inc.

BCBG Max Azria

Group, Inc.

The Newark Group

Inc.

CMP Susquehanna

Radio Holdings Corp.

Aventine Renewable

Energy Holdings

Incorporated

(1.98)

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 17

4/2/2009

4/2/2009

USA Leisure time / media 4/2/2009

J.P. Morgan Partners, LLC USA Health care /

chemicals

4/3/2009

USA Real estate 4/3/2009

Tracinda Corp. USA Aerospace /

automotive / capital

goods / metal

4/6/2009

Apollo Management, L.P. USA Energy and natural

resources

4/6/2009

Amaranth Advisors LLC ; Amaranth

Global Equities Master Fund Limited

Canada Leisure time / media 4/7/2009

CMP Susquehanna Holdings Corp.

(Current Parent); Cumulus Media

Partners, LLC; Bain Capital, LLC,

Cumulus Media Inc.

(NasdaqGS:CMLS), The Blackstone

Group, Private Equity Group, Thomas

H. Lee Partners, L.P.

SAM Sustainable Asset Management AG Metalmark Capital LLC ; Morgan

(1.86); The Vanguard Group, Inc. (2.03); Stanley Capital Partners IV, L.P.

Balyasny Asset Management L.P. (2.01); Bogle

Investment Management, L.P. (2.15); Fidelity

Management & Research Company (5.82);

BlackRock Investment Management (UK)

Limited (8.95); Wellington Management

Company L.L.P. (4.71); Blackrock Financial

Management Inc. (2.89); Metalmark Capital

LLC (27.54); Barclays Global Investors,

National Association (7.76)

USA Consumer / service

sector

4/7/2009

USA Forest and building

products /

homebuilders

4/8/2009

USA Leisure time / media 4/8/2009

Tudor Investment Corporation ;

Williams Companies, Inc.

(NYSE:WMB) (Prior Parent); Union

Bancaire Privee, CBITDB ; First

Republic Investment Management, Inc.

; Van Eck Associates Corporation ;

William K. Warren Foundation, The ;

Global Special Opportunities Trust

PLC (LSE:USPI) ; Touradji Capital

Management, L.P. ; Premier Asset

Management (Guernsey) Ltd. ; Victoire

Finance Et Gestion BV ; Worldwide

Hard Assets Fund ; Tivoli Partners,

L.P.

USA Utility 4/8/2009


Table 3: Defaulted Entities In 2009* (Continued)

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

Alliance Bank JSC Julius Baer Asset Management Limited (0.101); JSC "Seimar Alliance Financial

Kazakhstan Financial Institutions 4/14/2009

SEB Towarzystwo Funduszy Inwestycyjnych Corporation" (Current Parent); JSC

S.A. (0.040); Bank Julius Bär & Co Ltd., Asset SamrukKazyna National Welfare Fund

Management Arm (0.084); Nord Europe Private (Pending Parent/Investor)

Bank S.A., Asset Management Arm (0.000);

Charlemagne Capital Limited (AIM:CCAP)

(0.165); Unigestion SA (0.000); SEB Eesti

Uhispank, Asset Management Arm (0.052);

Gesbankinter SGIIC S.A. (0.010); Sporitelni

Investicni Spolecnost, A.s., Rentinvest

Otevreny Podilovy Fond (0.862); Templeton

Asset Management Ltd. (1.84)

French Lick Resorts &

Casino LLC

Harrah's

Entertainment Inc.

Energy Partners Ltd Satellite Asset Management, L.P. (2.96);

Putnam Investment Management, LLC (3.33);

HBK Investments L.P. (3.02); The Vanguard

Group, Inc. (2.76); Renaissance Technologies

Corp. (5.93); Artisan Partners Limited

Partnership (8.07); Barclays Global Investors,

National Association (7.47); Farallon Capital

Management, L.L.C. (6.38); Wellington

Management Company L.L.P. (7.83); Carlson

Capital, L.P. (7.44)

Orange County Holdings, Inc. (Current

Parent)

Crown Limited (ASX:CWN);

HarbourVest Partners, L.L.C.; SPB

Partners; The Blackstone Group,

Private Equity Group; The Carlyle

Group; TPG; TriArtisan Capital

Partners, LLC

ATS, Inc. Evercore Capital Partners ; Evercore

Capital Partners I, L.P.

Boykin Lodging Co. ; CFC, Inc. (Prior

Parent); Lauth Resorts & Casino, LLC

(Prior Parent)

USA Leisure time / media 4/15/2009

USA Leisure time / media 4/15/2009

USA Energy and natural

resources

Broder Bros., Co. Bain Capital, LLC USA Consumer / service

sector

4/16/2009

Human Touch LLC J.H. Whitney & Co., LLC USA Consumer / service

sector

4/16/2009

AbitibiBowater Inc. Barclays Global Investors, National Association Fairfax Financial Holdings Ltd.

Canada Forest and building 4/16/2009

(3.66); Lord, Abbett & Co. LLC (13.89); T. Rowe (TSX:FFH) ; Steelhead Partners, LLC

products /

Price Associates, Inc. (5.53); Bessemer

Investment Management LLC (3.98); Wellington

Management Company L.L.P. (3.84);

Tradewinds NWQ Global Investors, LLC (8.76);

Norges Bank Investment Management (6.29);

Global Pension Fund (Norway) (3.79); Third

Avenue Management, LLC (5.49); NWQ

Investment Management Company, LLC (6.39)

(Pending Parent/Investor)

homebuilders

Bowater Inc. Wright, James T.; Streed, W. Eric; Harvey,

William G.; Spraley, David A.

AbitibiBowater, Inc. (Parent) USA Forest and building

products /

homebuilders

Donnelley (R.H.) Corp. Carlyle Partners III, L.P., Goldman

Sachs Group, Merchant Banking

Division, The Carlyle Group

Six Flags Inc. TCW Asset Management Company (3.01);

Dimensional Fund Advisors LP (5.95); Wallace

R. Weitz & Co. (4.74); Fidelity Management &

Research Company (6.41); Capital Guardian

Trust Company (3.34); Barclays Global

Investors, National Association (2.86); Tracer

Capital Management L.P. (7.32); HBK

Investments L.P. (9.28); Cascade Investment,

L.L.C. (10.44); Citigroup Inc., Asset

Management Arm (10.53)

Six flags Theme Park

Inc.

TCW Asset Management Company (3.01);

Dimensional Fund Advisors LP (5.95); Wallace

R. Weitz & Co. (4.74); Fidelity Management &

Research Company (6.41); Capital Guardian

Trust Company (3.34); Barclays Global

Investors, National Association (2.86); Tracer

Capital Management L.P. (7.32); HBK

Investments L.P. (9.28); Cascade Investment,

L.L.C. (10.44); Citigroup Inc., Asset

Management Arm (10.53)

Dayton Superior Corp. Odyssey Investment Partners, LLC; Morgan

Stanley Investment Management Inc. ;

Goldman Sachs Asset Management, L.P.;

Zimmerman, Eric R.; Van Kampen Asset

Management

Generation Partners ; Generation

Capital Partners II, L.P. ; Generation

Members Fund II LP

Generation Partners ; Generation

Capital Partners II, L.P. ; Generation

Members Fund II LP

Chrysalis Ventures, Inc. ; Richland

Ventures ; Windcrest Partners ;

Hanseatic Corporation ; Lawrence,

Tyrrell, Ortale & Smith ; Lawrence,

Tyrrell, Ortale & Smith II L.P. ; Red

Zone Capital Management Co., L.L.C.

; Red Zone Capital Fund I

Odyssey Investment Partners, LLC Deutsche Bank AG, Investment Arm,

Onex Corporation (TSX:OCX),

Ripplewood Holdings, L.L.C., TMB

Industries

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 18

4/15/2009

4/16/2009

USA Leisure time / media 4/16/2009

USA Leisure time / media 4/16/2009

Chrysalis Ventures, Inc. ; Richland

Ventures ; Windcrest Partners ;

Hanseatic Corporation ; Lawrence,

Tyrrell, Ortale & Smith ; Lawrence,

Tyrrell, Ortale & Smith II L.P. ; Red

Zone Capital Management Co., L.L.C.

; Red Zone Capital Fund I

USA Leisure time / media 4/16/2009

USA Forest and Building

Products /

Homebuilders

4/20/2009


Table 3: Defaulted Entities In 2009* (Continued)

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

Hexion Specialty

Apollo Management, L.P. Kohlberg Kravis Roberts & Co. USA Health Care / 4/21/2009

Chemicals Inc.

Chemicals

NTK Holdings Inc. USA Forest and Building

Products /

Homebuilders

4/21/2009

Barrington

Broadcasting LLC

USA Leisure Time / Media 4/21/2009

Emmis

Smulyan, Jeffrey H.; Luther King Capital

Apax Partners L.P., Apax Partners USA Leisure Time / Media 4/21/2009

Communications Corp. Management Corporation; Martin Capital

Worldwide LLP, Metalmark Capital

Management, LLP; Dimensional Fund Advisors

LLC, Morgan Stanley Leveraged

LP; OppenheimerFunds, Inc.

Equity Fund, L.P.

BTA Bank J.S.C. East Capital Asset Management Raiffeisen International BankHolding Kazakhstan Financial Institutions 4/24/2009

AB, East Capital Private Equity

AB (Jyrki Talvitie, Kestutis

Sasnauskas, Margot Jacobs), Firebird

Management LLC, JSC

SamrukKazyna National Welfare

Fund (Arman Dunayev)

AG (WBAG:RIBH)

Banco Hipotecario Met AFJP S.A., Asset Management Arm; Buenos Aires Trade and Finance Ritelco S.A. Argentina Financial Institutions 4/24/2009

S.A.

Origenes AFJP S.A.; Credit Suisse Asset Center S.A., Corsair Capital LLC, IRSA

Management, LLC; Previsol AFJP S.A.; Investments and Representations Inc.

ProfesiónAuge AFJP S.A.

(BASE:IRSA)

Metrofinanciera S.A.

de C.V. SOFOM.

E.N.R.

Mexico Financial Institutions 4/24/2009

Synagro Technologies Neuberger Berman, LLC Dancap Private Equity Inc., The Astoria Capital Management, USA Aerospace / 4/27/2009

Inc.

Carlyle Group

Inc., GTCR Capital Partners,

Automotive / Capital

L.P., GTCR Fund VII, L.P., GTCR

Golder Rauner, LLC, TCW Crescent

Mezzanine II, TCW/Crescent

Mezzanine Partners, L.L.C.

Goods / Metal

Syncora Guarantee

Syncora Holdings Ltd.

XL Capital Ltd. (NYSE:XL) USA Insurance 4/27/2009

Inc.

(OTCPK:SYCR.F)

Airborne Health Inc. Summit Partners (C. J.

USA Health Care / 4/28/2009

Fitzgerald, Joseph Trustey, Sonya

Brown)

Chemicals

Brand Development

Sunway Group Belize Consumer / Service 4/28/2009

Inc.

Sector

Chrysler LLC Cerberus Capital Management, Sun Capital Partners, Inc., Versa USA Aerospace / 4/30/2009

L.P., Daimler AG (XTRA:DCX), Fiat Capital Fund I, Versa Capital

Automotive / Capital

S.p.A. (CM:F) (Pending)

Management, Inc.

Goods / Metal

Rexnord LLC RBS Global Inc. Carlyle Partners III, L.P., The Carlyle

Group

Mark IV Industries Inc. Lucchini S.p.A (Pending), Sun Capital

Partners, Inc.

Source Interlink

Companies, Inc.

Workflow

Management Inc.

AEC Associates LLC; Scopia Management Inc;

Goldman, Sachs & Co., Asset Management

Arm; Dimensional Fund Advisors LP;

Soundpost Partners, LP

The Yucaipa Companies, LLC Monroe Capital L.P., Monroe Capital

LLC

EdgeStone Capital Partners Inc., GF

Private Equity Group, LLC, Perseus,

L.L.C., The Renaissance Group, LLC

Wolverine Tube Inc. Alpine Group Inc.; Deason, James E.; Johnson, Alpine Group Inc.

Garry K.; Glickenhaus & Co.; Gabelli Funds, (OTCPK:APNI), Plainfield Asset

LLC

Management LLC, Wellington

Management Company L.L.P.

USA Aerospace /

Automotive / Capital

Goods / Metal

4/30/2009

21 Partners SGR S.p.A, AAC Capital USA Aerospace / 5/1/2009

Partners, Arca Impresa, Arca Impresa

Automotive / Capital

Gestioni SGR SpA, Arca Merchant

SpA, Athena Private Equity SA, BC

Partners,Interbanca SpA (Stefano

Manservisi), Mediobanca S.p.A.

(CM:MB), Meliorbanca SpA, Teachers'

Private Capital

Goods / Metal

TD Capital Mezzanine Partners, TD

Capital Mezzanine Partners Fund II,

L.P.

USA Leisure Time / Media 5/1/2009

USA Leisure Time / Media 5/1/2009

Deephaven Capital Management USA Aerospace / 5/4/2009

LLC, Deephaven Small Cap Growth

Automotive / Capital

Fund LLC, Delta Institutional, LP, Delta

Offshore Ltd, Delta Onshore, LP, Delta

Pleiades, LP, Diversified Investment

Advisors, Inc., Fidelity Management &

Research Company, Fidelity Northstar

Fund, Fidelity Puritan Trust Fidelity

LowPriced Stock Fund

(NasdaqGM:FLPS.X), Genstar Capital

Partners I, L.P., Genstar Capital,

LLC, Prism Partners I, L.P., Silver Oak

Investments, Trafelet Capital

Management, L.P, Weintraub Capital

Management, L.P.

Goods / Metal

GSCP (NJ) L.P. USA Financial Institutions 5/5/2009

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 19


Table 3: Defaulted Entities In 2009* (Continued)

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

Thomson S.A. Brandes Investment Partners, L.P.; Societe NEC Corp. (TSE:6701), Silver Massachusetts Technology

France Consumer / Service 5/7/2009

Generale Asset Management; Sparinvest

Fondæglerselskab A/S; Templeton Investment

Counsel, LLC; JPMorgan Asset Management

(UK) Limited

Lake (David Roux), TSA

Development Corporation

Sector

Sonic Automotive Inc. Sonic Financial Corporation, Asset

USA Aerospace / 5/8/2009

Management Arm; Fidelity Management &

Automotive / Capital

Research Company; Dimensional Fund

Advisors LP; Smith, O. Bruton; Barclays Global

Investors, National Association

Goods / Metal

Standard Motor GAMCO Asset Management, Inc.; Sills, Arthur

Dana Holding Corporation

USA Aerospace / 5/8/2009

Products Inc. S.; Dimensional Fund Advisors LP; Davis,

(NYSE:DAN)

Automotive / Capital

Susan F.; Davis, Arthur D.

Goods / Metal

November 2005 Land

Investors, LLC

International Banking

Corp. (The)

Hayes Lemmerz

International Inc.

Troob Capital Management; Rutabaga Capital

Management LLC; Aspen Advisors LP, Asset

Management Arm; Deutsche Bank Securities

Inc., Asset Management Arm

USA Real Estate 5/11/2009

Ahmad Hamad Algosaibi & Bros. Bahrain Forest and building

products /

homebuilders

CIBC Wood Gundy Capital, J.P.

Morgan Partners, LLC, JLL

Partners (Paul Levy), Joseph Littlejohn

& Levy Fund II, L.P., Palladium Equity

Partners, LLC, TSG Capital Fund II,

L.P., TSG Capital Group, Varity

Corporation

USA Aerospace /

automotive / capital

goods / metal

PT Davomas Abadi

Indonesia Consumer / service 5/12/2009

Tbk.

sector

G Steel Public Co. Ltd. Thailand Aerospace /

automotive / capital

goods / metal

5/12/2009

Pakistan Mobile

Orascom Telecom Holding S.A.E

Pakistan Telecommunications 5/12/2009

Communications Ltd.

(LSE:OTLD); The Capital Trust Group,

Investments Arm

NES Rentals Holdings Rutabaga Capital Management LLC; Private Diamond Castle Holdings,

1818 Fund III, L.P., AIG

USA Aerospace / 5/13/2009

Inc.

Management Group, Inc.; Pacholder & LLC (Stephen Bassford)

Investments, Brown Brothers Harriman

automotive / capital

Company, LLC; AIG Global Investment Corp.

& Co. Investment Arm, GTCR Fund V,

goods / metal

(Asia) Ltd.; JPMorgan Investment Advisors Inc.;

L.P., GTCR Golder Rauner,

State Teachers Retirement System of Ohio;

LLC, Lexington Partners,Oaktree

AIG Global Investment Corp. (United States);

Kentucky Retirement Systems

Capital Management, L.P.

Dex Media Inc. Internationale Kapitalanlagegesellschaft mbH; PPM America Capital Partners, LLC Carlyle Partners III, L.P., Lexington USA Leisure time / media 5/15/2009

HSBC Global Asset Management (Hong Kong)

Partners, New York State Retirement

Ltd.

CoInvestment Fund, L.P., PCG Capital

Partners LLC, TD Capital, TD Capital

Communications Partners, The Carlyle

Group, Welsh, Carson, Anderson &

Stowe, Welsh, Carson, Anderson &

Stowe IX L.P.

Donnelley (R.H.), Inc. Doddsville Investments, LLC; Douglas, Kevin

G.; Horizon Asset Management, Inc.; Corwin,

Jack B.; Norges Bank Investment Management

Carlyle Partners III, L.P., Goldman

Sachs Group, Merchant Banking

Division, The Carlyle Group

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 20

5/12/2009

5/12/2009

USA Leisure time / media 5/15/2009

Rapsod Trade Ltd. British Virgin

Islands

Leisure time / media 5/15/2009

Atrium Cos. Inc. National City Equity Partners, Ardshiel, Inc. (Daniel Morley, Dennis USA Forest and building 5/18/2009

LLC, PPM America Capital Partners, McCormick, Roger Knight), GE

products /

LLC, UBS Capital Americas

Investments Private Placement

Partners II, LP, GE

Investments, Heritage Fund I,

L.P.,Heritage Partners, Inc., HM

Capital Partners LLC

homebuilders

Mandra Forestry

British Virgin Forest and building 5/18/2009

Finance Ltd.

Islands products /

homebuilders

Inn of the Mountain

Gods Resort and

Casino

USA Leisure time / media 5/18/2009

NeoChina Land Group

Freight Links Express Holdings Ltd. Samsung C&T Corporation

China Real Estate 5/18/2009

(Holdings) Ltd.

(SGX:F01)

(KOSE:A000830), Samsung Securities

Co. Ltd. (KOSE:A016360), Yu Ming

Investments Ltd. (SEHK:666)


Table 3: Defaulted Entities In 2009* (Continued)

Entity Public Ownership (Largest shareholders) Private Ownership (Current) Private Ownership (Prior) Country Sector Date

Lazy Days' R.V.

Bruckmann, Rosser, Sherrill & Co. Alliance Holdings, Inc., PPM America, USA Aerospace / 5/19/2009

Center Inc.

L.L.C. (Nicholas Sheppard, Stephen Inc

automotive / capital

Sherrill, Thomas Baldwin)

goods / metal

Caraustar Industries F&C Asset Management plc; Invesco

Wachovia Capital Partners, Inc., WCP USA Forest and building 5/19/2009

Inc.

PowerShares Capital Management;

Fund I, L.P.

products /

Dimensional Fund Advisors LP; F&C

Management Ltd; Barclays Global Investors,

National Association

homebuilders

Barzel Industries Inc. Playford, Gilbert E.; Royal Capital Management,

USA Aerospace / 5/19/2009

LLC; Scopia Management Inc; De Gasperis,

automotive / capital

Corrado; Reed, Conner & Birdwell, LLC

goods / metal

Majestic Holdco, LLC USA Leisure time / media 5/19/2009

ION Media Networks

Inc.

Burgess, R. Brandon; Rajewski, Raymond S.;

Roskin, William A.; Brandon, Henry J.; Citadel

Investment Group, L.L.C.

Dana Holding Corp. Schulz, Mark A.; Wallace, Mark E.; Stanage,

Nick L.; Convis, Gary L.; Schwarz, Eric W.;

Silver Point Capital L.P.

Georgia Gulf Corp. Sun Capital Partners, Inc.; Dimensional Fund

Advisors LP; Fidelity Management & Research

Company; Barclays Global Investors, National

Association; The Vanguard Group, Inc.

Berry Plastics Group

Inc.

Metaldyne Corp.

Visteon Corp.

Apollo Management, L.P. (Joshua

Harris, Patrick Dalton), Goldman

Sachs Group, Merchant Banking

Division, Graham

Partners (Christopher Lawler)

Heartland Industrial Partners, L.P.; MetLife, Inc.

(NYSE:MET); Masco Corporation Limited;

Credit Suisse Securities (USA) LLC, Investment

Citadel Investment Group, L.L.C., NBC CIBC World Markets Corp., Deutsche USA Leisure time / media 5/20/2009

Universal, Inc.

Bank AG, Investment Arm, GE

Commercial Finance, Sandler Capital

Management, Private

Equity, Wachovia Capital Partners,

Inc., William E. Simon & Sons Private

Equity Partners, L.L.C., William E.

Simon & Sons Private Equity Partners,

L.P.

Centerbridge Partners L.P. ArvinMeritor Inc. (NYSE:ARM) USA Aerospace /

automotive / capital

goods / metal

USA Health care /

chemicals

First Atlantic Capital, Ltd. USA Health care /

chemicals

Arm Graham Partners (Christopher Lawler), BancBoston Capital, Inc., Credit Suisse

Pardus Capital Management L.P.; Donald

USA

Smith & Co., Inc.; Shell Asset Management

Company B.V.; TIAA-CREF Investment

Management, LLC; Stebbins, Donald J.;

RiverSource Investments, LLC Ford Motor Co. (NYSE:F)

*Excludes confidential entities. Data as of May 28, 2008.

Source: Standard & Poor’s Global Fixed Income Research; Standard & Poor’s Capital IQ.

Global Credit Comment: Exposure To Deteriorating Assets Increases Risks To Private Equity Page 21

USA

5/21/2009

5/21/2009

5/22/2009

Aerospace / Automoti 5/28/2009

Aerospace / Automoti 5/28/2009


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