Pfleiderer - comment

As the A&E transaction comes to a close with 99% of bondholders accepting the terms from the company and its main shareholder - Strategic Value Partners, both Moody’s and S&P have downgraded the issuer citing the operating challenges and lack of adequate compensation for existing bondholders. We think this is a storm in a teacup and does not address the improvement in the macro environment and the real estate market (driven by rate cuts), operational improvements, movement into new adjacent areas will impact financials positively going forward. It is standard operating procedures for how the ratings agencies look at these situations. There is no change in our fundamental view of the credit.