Moody's rates MFS funds shares Aa1, Aa2

Moody's Investors Service said it assigned Aa2 ratings to three remarketable variable-rate municipal term preferred shares issued by municipal closed-end funds advised by Massachusetts Financial Services Co. The agency assigned an Aa1 rating to a fourth fund’s shares.

The proceeds will be used by the to refinance their variable-rate municipal term preferred (VMTP) shares. Moody's will withdraw the ratings on the funds' VMTP Shares upon redemption.

The funds assigned the Aa2 ratings are the MFS Municipal Income Trust (MFM) with $113.8 million of series 2051 with 1,138 shares at a liquidation preference of $100,000 per share, the MFS High Income Municipal Trust’s (CXE), $97.5 million of series 2051 with 975 shares at liquidation preference of $100,000 per share and the MFS High Yield Municipal Trust’s (CMU) $75 million of series 2051 with 750 shares at liquidation preference of $100,000 per share.

Moody’s assigned an Aa1 rating to MFS Investment Grade Municipal Trust’s (CXH), $48.8 million of series 2051 with 488 shares at a liquidation preference of $100,000 per share.

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