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CQS Rig Finance Fund Ltd (RIG)

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Monday 29 June, 2009

CQS Rig Finance Fund Ltd

Monthly Shareholder Fact Sheet





                                    CQS RIG FINANCE FUND LIMITED
                                    May 2009 Monthly Shareholder Fact
Sheet

Since the Company's announcements regarding the restoration of
trading in its shares on AIM and CISX, respectively on 18 May and 22
May, WTI Crude for July delivery rose by 27% over the month of May
from $52 to $66 per barrel. This move was seen as part of a wider
rally in commodities as liquidity conditions improved and markets
took the view that the recent sell off had been overdone. Strong
gains were recorded in drilling stocks and in the E&P (Exploration
and Production) sector. Conversely, certain commentators and
statistics point to the view that the rebound in oil price may be
sentiment rather than demand led and for prices to be sustained,
further evidence of lower inventories and improved demand is
required.

There was further evidence of day-rates softening in the rig market
although the Ultra Deepwater segment remains relatively resilient.
Demand for the UDW units was recently evidenced by the 3 year
contract awarded to Odfjell by Petrobras.

Credit markets, especially high yield, also rallied strongly in May
and the Company's portfolio benefited from this. Significant gains
were recorded across the portfolio, especially in those positions
with low perceived construction and/or financing risk. The defaulted
and distressed positions in the portfolio displayed a lower
correlation to the movements in the wider markets reflecting greater
issuer-specific risk.

All market data sourced from Bloomberg

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