Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
Global Credit Research - 08 Apr 2011
Approximately $661 million preferred shares issued to retire auction rate securities
New York, April 08, 2011 -- Moody's assigned Prime-1 short-term and Aaa long-term
ratings to $661 million Variable Rate Demand Preferred Shares (VRDP)
being issued by the following BlackRock Closed end funds (CEFs)
BlackRock MuniYield California Quality Fund, Inc. (MCA) $166.5
BlackRock MuniYield Michigan Quality Fund, Inc. (MIY) $144.6
BlackRock MuniYield New Jersey Fund, Inc. (MYJ) $102.2
BlackRock MuniYield New York Quality Fund, Inc. (MYN) $247.7
The short-term ratings, which address Moody's expectation
of timely repayment of liquidation preference of the VRDP in the event
of an optional or mandatory tender, are based upon the unconditional
VRDP liquidity purchase agreement provided by Citibank N.A.
for the four funds, the structure of the transaction and credit
worthiness of the bank providing the VRDP liquidity purchase agreement.
Moody's long-term ratings assigned to the VRDP addresses the fund's
ability to honor optional or mandatory redemptions as well as its ability
to meet its dividend obligations and is based upon the fund's strong coverage
of Moody's overcollateralization ratios. In addition, the
long-term ratings factor in the Investment Company Act of 1940
(1940 Act) asset coverage ratio requirement that are all substantially
in excess of the preferred share obligations, adherence to conservative
asset coverage maintenance provisions, and deleveraging procedures
in the event of a coverage ratio breach as well as BlackRock's effective
portfolio management practices with regard to the fund.
The short-term ratings assigned to VRDP address the credit quality
of liquidity provider and unconditional nature of the VRDP liquidity purchase
The Prime-1 ratings reflect Moody's assessment that VRDP holders
will be able to tender their shares unconditionally in a timely manner
given the terms of the VRDP liquidity purchase agreement provided by Citibank,
N.A. (currently rated A1/P-1) for the four funds.
The liquidity provider agrees to purchase the rated shares on any business
day with a 7-day tender notice in a failed remarketing .
As such, Moody's short-term ratings associated with the VRDP
are linked to the creditworthiness of the liquidity provider and may change
whenever the short-term rating of the liquidity provider is changed.
The VRDP liquidity purchase agreement has no automatic termination events
or conditions precedent to funding, making it an unconditional agreement
to purchase tendered but unremarketed shares pursuant thereto.
The Prime-1 ratings will expire upon the earlier of the termination
of the VRDP liquidity purchase agreement or 364 days from the date of
issuance of the facility.
In addition, Moody's cites the inclusion of mandatory tender events
to address any unscheduled termination of the VRDP liquidity purchase
agreement. The occurrence of these events would put in motion a
notification process whereby VRDP holders are apprised of a mandatory
tender. Included in the mandatory tender events are the:
(i) downgrade of the liquidity provider rating to Prime-3;
(ii) failure of the fund to pay scheduled dividends; (iii) breach
of an effective leverage covenant continued for 60-days; (iv)
an extraordinary corporate event affecting the liquidity provider;
(v) failure of the fund to remit fees to the liquidity provider for services
rendered (if the liquidity provider consents to declaring as a mandatory
tender event), (vi) the notification of a special rate period,
and (vii) substitution of the liquidity provider. The liquidity
provider also has a mandatory purchase obligation with respect to all
outstanding VRDP shares upon termination of the VRDP liquidity purchase
Once the VRDP shares are tendered to the liquidity provider, either
through an optional or a mandatory tender, or mandatory purchase,
the liquidity provider has no automatic termination events or "outs" which
would allow the liquidity provider not to fund the tender. The
liquidity provider and any other holder of VRDP shares benefits from a
heightened dividend rate mechanism. The increased rate mechanism
is linked to a base rate plus applicable spread that systematically increases
over time during the failed remarketing period. The dividend rate
is linked to the long term rating assigned to the VRDP shares and is subject
to a maximum of 15%. The increased rate incentivizes new
holders to bid for VRDP shares thus increasing the likelihood of a successful
remarketing. The liquidity provider has the right to put back the
VRDP shares to the fund after it has held them for a continuous period
of six months, either after scheduled termination of the liquidity
purchase agreement or continued failure of the remarketing process.
VRDP shareholders will have the option to tender their VRDP shares for
remarketing and purchase on any business day not less than seven days
after delivery of a notice of tender to a tender and paying agent appointed
by these funds, with the consent of the liquidity provider,
at the purchase price. The remarketing agent will use its best
efforts to remarket any VRDP shares so tendered. In the event no
remarketing occurs on or before the relevant purchase date, or VRDP
shares remain unsold pursuant to an attempted remarketing, the tender
and paying agent will deliver all unsold VRDP shares to the liquidity
provider for purchase on such purchase date.
Proceeds from the VRDP Shares issuance will be used to defease and redeem
in full the fund's outstanding auction rate preferred shares (ARPS).
Pending the redemption following the required notice period, the
Aaa ratings assigned to the fund's ARPS shares are affirmed. The
leverage levels for the four funds are expected to remain at or near its
current levels between 36% and 43% of the managed assets.
Long term ratings assigned to VRDP address the full and timely payment
of dividends and liquidation preference amounts upon redemption.
The Aaa rating, which is coupled to mandatory tender events in case
of an uncured basic maintenance amount (BMA) coverage breach addresses
the ultimate repayment after the expiration of 6 month holding period
following mandatory purchase by the liquidity provider. The rating
reflect the fund's modest leverage, Moody's strong coverage ratios
combined with asset maintenance procedures that require funds to delever
in the event the discounted values of portfolio assets decline below the
preferred shares par amounts. This is in addition to the limitations
and asset coverage testing requirements superimposed by the 1940 Act which
limit leverage in the form of preferred stock to an asset coverage ratio
of 200%. These guideposts work in tandem to reinforce coverage
sufficiency for the VRDP in connection with the rating.
In addition, the liquidity profile of the portfolio is consistent
with the collateral discount factors that seek to simulate price declines
in the event of a forced liquidation of assets to meet a mandatory redemption.
Moody's historical asset coverage levels for the fund, since inception,
have not declined below the Moody's BMA threshold of 100% for Aaa
rated instruments with exposure periods of seven weeks. The credit
quality of portfolio assets, with over 95% of portfolio assets
invested in investment grade securities, and strategies to diversify
by issuer and sector, also support the strong asset coverage levels.
That said, Moody's long-term ratings may change if asset
coverage levels decline or in the event that future capital structure
changes that restrict the fund's ability to meet preferred shares optional
or mandatory redemptions.
At the time of their issuance, asset coverage levels for the funds
were, as follows:
Moody's (100%) 1940 Act (200%)
MYN 146% 302%
MYJ 161% 296%
MIY 148% 276%
MCA 139% 377%
BlackRock Advisors LLC, is the investment adviser for the funds,
responsible for determining the fund's overall investment strategy.
BlackRock had approximately $3.561 trillion of assets under
management as of December 31, 2010, of which approximately
$22 billion was in municipal closed end funds.
The ratings assigned to the VRDP are not recommendations to purchase,
hold or sell those shares or their suitability for a particular investor.
Also, Moody's ratings applicable to the preferred stock addresses
the full-liquidation-preference amount paid upon redemption,
either due to a mandatory or voluntary redemption, including the
distribution of the fund assets upon liquidation. The ratings also
address the full and timely payment of dividends, subject to rate
periods that could change from time to time due to special-rate
period designations and appropriate notices/conventions.
Information sources used to prepare the credit rating are the following:
parties involved in the ratings, parties not involved in the ratings,
public information, confidential and proprietary Moody's Investors
Service information, and confidential and proprietary Moody's Analytics
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purpose of assigning
a credit rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate,
independent third-party sources. However, Moody's
is not an auditor and cannot in every instance independently verify or
validate information received in the rating process.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com
for further information.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
Managed Investments Group
Moody's Investors Service
Senior Vice President
Managed Investments Group
Moody's Investors Service
Moody's Investors Service
Moody's Assigns Aaa/P-1 Ratings to Variable Rate Demand Preferred Shares to be issued by four BlackRock Muni Closed end funds
250 Greenwich Street
New York, NY 10007
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.