Fitch assigns AA to Pimco preferreds

Fitch Ratings said it assigned an AA long-term rating for the $100 million of remarketable variable-rate munifund term preferred shares, series 2052-A issued by Pimco Flexible Municipal Income Fund.

The agency also rates the fund’s series 2051-A Rvmtp shares and other preferred shares AA.

“Based on discussions with management and review of certain transaction documents, Fitch expects that during the outstanding term of the Rvmtp shares, the fund may invest up to 40% of its total assets in securities that at the time of investment are rated below the BBB rating category, or, if unrated, determined by Pimco to be of comparable quality, Fitch said in a press release.

The fund will invest at least 80% of its assets in municipal bonds and other municipal securities and up to 20% of assets in non-municipal securities that generate taxable income.

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