Octagon Investment Partners IX, Ltd. JPMorgan - Irish Stock Exchange

Moody's Rating Moody's Rating Factor Moody's Rating Moody's Rating Factor
Aaa 1 Ba1 940
Aa1 10 Ba2 1,350
Aa2 20 Ba3 1,766
Aa3 40 B1 2,220
A1 70 B2 2,720
A2 120 B3 3,490
A3 180 Caa1 4,770
Baa1 260 Caa2 6,500
Baa2 360 Caa3 8,070
Baa3 610 Ca or below 10,000
For purposes of the Weighted Average Rating Factor Test, (i) any Defaulted Obligation will not be included in
such calculation and (ii) with respect to any Synthetic Security, the Moody's Rating Factor will be as assigned by
Moody's.
The Moody's Diversity Test
The diversity test (the "Moody's Diversity Test") is a test that measures diversity of the portfolio of Collateral
Debt Obligations of the Issuer and requires that such portfolio equal or exceed a minimum Diversity Score that is
derived from a Diversity Score Table (included as Exhibit A to this Offering Memorandum) published by Moody's.
The Moody's Diversity Test will be satisfied on any Measurement Date if the Diversity Score equals or exceeds the
requirement corresponding to the applicable Minimum Diversity/Maximum Rating/Minimum Spread/Maximum
WAL Matrix and "row/column combination" thereof elected by the Collateral Manager.
The "Diversity Score" means, with respect to the Collateral Debt Obligations, the sum of each of the Industry
Diversity Scores. Generally, an "Average Par Amount" is calculated by summing the Issuer Par Amounts divided by
the number of issuers of Collateral Debt Obligations; provided that, for purposes of calculating the number of
issuers of Collateral Debt Obligations, any issuers, originators or obligors affiliated with one another (other than
issuers that are affiliated solely by reason of common ownership by a common Financial Sponsor) and that are in the
same industry will be considered one issuer.
With respect to Collateral Debt Obligations (other than Defaulted Obligations):
(1) An "Issuer Par Amount" is calculated for each issuer represented in the Collateral Debt Obligations by
summing the Principal Balance of all Collateral Debt Obligations in the Collateral issued by that issuer or an
affiliate of that issuer; provided that, for purposes of calculating the Issuer Par Amount, the Principal Balance of
a Defaulted Obligation will be deemed to be zero.
(2) An "Equivalent Unit Score" is calculated for each issuer of a Collateral Debt Obligation by taking the
lesser of (A) one and (B) the Issuer Par Amount for such issuer divided by the Average Par Amount.
(3) An "Aggregate Industry Equivalent Unit Score" is then calculated for each of the Moody's industry
classification groups by summing the Equivalent Unit Scores for each issuer of a Collateral Debt Obligation in
such Moody's industry classification group.
(4) An "Industry Diversity Score" is then established by reference to the Diversity Score Table shown set
forth on Exhibit A for the related Aggregate Industry Equivalent Unit Score; provided that, if the Aggregate
Industry Equivalent Unit Score falls between any two such scores, then the applicable Industry Diversity Score
will be the lower of the two Industry Diversity Scores in the Diversity Score Table.
The Weighted Average Life Test
The "Weighted Average Life Test" is a test that will be satisfied as of any Measurement Date during the
Reinvestment Period if the Weighted Average Life of the Collateral Debt Obligations (excluding Defaulted
Obligations) is less than (a) the number of years corresponding to the applicable Minimum Diversity/Maximum
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