Track record of relatively modest credit losses Funding, credit, and operational support from Jefferies Group and MassMutual Moderate strategic importance to Jefferies Group Concentration in leveraged lending Liquidity and market risk inherent in originate-to-syndicate strategy Credit risk of loans held on balance sheet Standard&Poor's Ratings Services' positive outlook on Jefferies Finance LLC (JFIN) reflects its reduced leverage, improved liquidity, and strong recent operating results. We could raise our ratings on JFIN and its debt if the company maintains leverage not materially higher than 4.5x, and adequate liquidity to fund all of its commitments. The frequency and magnitude by which JFIN's commitments exceed its liquidity will influence the rating. The company's liquid assets and funding capacity usually exceed its
