New York, May 08, 2014 -- Moody's Investors Service, ("Moody's") has
put on review for possible downgrade the P-1 short-term
ratings of eight Variable Rate Demand Preferred ("VRDP") series
issued by seven closed-end funds managed by Nuveen Fund Advisors,
LLC. The short term ratings of the VRDP shares are based on the
Variable Rate Demand Preferred Shares (VRDP) Purchase Agreements with
Deutsche Bank Trust Company Americas ("DBTCA") as liquidity
provider. The rating review follows Moody's announcement on May
6, 2014, placing the short-term ratings of DBTCA on
review for possible downgrade.
The short-term ratings of the VRDP shares issued by the closed-end
funds listed below were placed on review for possible downgrade:
Fund Name, Ticker, Series, VRDP Amount
Nuveen AMT-Free Municipal Income Fund, NEA, Series
1, $219,000,000
Nuveen California AMT-Free Municipal Income Fund, NKX,
Series 2, $35,500,000
Nuveen California AMT-Free Municipal Income Fund, NKX,
Series 3, $42,700,000
Nuveen California Municipal Market Opportunity Fund, Inc.,
NCO, Series 1, $49,800,000
Nuveen Dividend Advantage Municipal Fund 2, NXZ, Series 2,
$196,000,000
Nuveen Municipal Market Opportunity Fund, Inc., NMO,
Series 1, $350,900,000
Nuveen New York AMT-Free Municipal Income Fund, NRK,
Series 4, $50,000,000
Nuveen New York Performance Plus Municipal Fund, Inc.,
NNP, Series 1, $89,000,000
RATINGS RATIONALE
Moody's notes that the long-term ratings assigned to these VRDP
shares are not affected by the rating review. The rating review
will focus on the eventual short-term rating of the liquidity provider,
DBTCA, which is currently under review. The rating review
will also consider any replacement of the liquidity provider and the short-term
rating of such new liquidity provider, if such a replacement were
to occur.
The methodologies used in this rating were "Moody's Methodology for Rating
Securities Issued by U.S. Closed-End Funds" published
in May 2013, and "Rating Transactions Based on the Credit Substitution
Approach: Letter of Credit backed, Insured and Guaranteed
Debts" published in March 2013. Please see the Credit Policy page
on www.moodys.com for a copy of these methodologies.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Michael C DeCavalcante
Analyst
Managed Investments Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Yaron Ernst
MD - Managed Investments
Managed Investments Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's puts the short-term ratings of Variable Rate Demand Preferred (VRDP) Shares issued by seven closed-end funds on review for downgrade