Fitch downgrades or affirms BlackRock, Nuveen preferreds

Fitch Ratings said it downgraded or affirmed the short-term ratings assigned to variable-rate demand preferred shares issued by 23 municipal closed-end funds managed by BlackRock Advisors, LLC

and 12 municipal closed-end funds managed by Nuveen Fund Advisors, Inc. following corresponding rating actions on the associated liquidity providers.

The AAA long-term ratings assigned to the preferreds are unaffected. The agency said the long-term ratings are a function of the asset coverage and structural protections to the preferreds, whereas the short-term ratings reflect the ability of the associated liquidity provider to repurchase the preferreds when tendered by the holder, among other pre-specified events.

The series W-7 preferreds due July 2041 issued by the following funds were downgraded to F1 from F1+ and removed from Rating Watch negative: BlackRock MuniHoldings New Jersey Quality Fund, Inc., BlackRock MuniHoldings New York Quality Fund, Inc., BlackRock MuniYield New Jersey Quality Fund, Inc., BlackRock MuniHoldings Investment Quality Fund and BlackRock MuniYield Fund, Inc. Bank of America, NA is the liquidity provider.

Similarly, the series W-7 preferreds due July 2041 issued by the following funds were downgraded to F1 from F1+ and removed from Rating Watch negative: BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield Michigan Quality Fund II, Inc., BlackRock MuniYield Pennsylvania Quality Fund, BlackRock MuniYield California Quality Fund, Inc., BlackRock MuniYield Michigan Quality Fund, Inc., BlackRock MuniYield New Jersey Fund, Inc., BlackRock MuniYield New York Quality Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniYield Investment Fund, BlackRock MuniYield Quality Fund III, Inc., Nuveen California Investment Quality Municipal Fund, Inc., Nuveen California Performance Plus Municipal Fund, Inc., Nuveen Insured California Premium Income Municipal Fund 2, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen New York Quality Income Municipal Fund, Inc., and Nuveen Premier Insured Municipal Income Fund, Inc. Citibank, NA is the liquidity provider.

The series 1 preferreds due May 2041 issued by the following funds were downgraded to F1 from F1+ and removed from Rating Watch negative: Nuveen Investment Quality Municipal Fund, Inc., Nuveen Premier Municipal Income Fund, Inc., Nuveen Premium Income Municipal Fund 2, Inc. and Nuveen Select Quality Municipal Fund, Inc. Barclays Bank plc is the liquidity provider.

Finally, the series W-7 preferreds due 2041 issued by the following funds were affirmed at F1 and removed from Rating Watch negative: BlackRock Muni New York Intermediate Duration Fund, Inc., BlackRock New York Municipal Bond Trust, BlackRock New York Municipal Income Quality Trust, BlackRock New York Municipal Income Trust II, BlackRock Municipal Bond Investment Trust, BlackRock Municipal Income Investment Trust, BlackRock MuniYield Quality Fund, Inc., Nuveen California Dividend Advantage Municipal Fund and Nuveen Insured California Dividend Advantage Municipal Fund. Morgan Stanley Bank, NA is the liquidity provider.

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