Pioneer Investments Reports Revised Ratings For Closed-End Fund Preferred Shares
Pioneer Investments today announced recent changes in the ratings of
certain auction rate preferred shares (“ARPS”) issued by four of its
closed-end funds and discussed the impact of those ratings changes.
Pioneer Investments today announced recent changes in the ratings of certain auction rate preferred shares (“ARPS”) issued by four of its closed-end funds and discussed the impact of those ratings changes. On July 12, 2012, Moody’s Investors Service, Inc. (“Moody’s”) downgraded the ratings of debt and preferred shares issued by nearly all equity, municipal bond and taxable fixed income closed-end funds in the industry, including ARPS issued by four Pioneer closed-end funds. The ratings actions are the result of a decision by Moody’s to revise its ratings methodology and are not related specifically to any changes in the portfolio investments or structure of Pioneer’s closed-end funds. More information on these changes can be found on www.moodys.com. There have been no changes in the objectives or investment strategies of Pioneer’s closed-end funds. As of July 12, 2012, below are Moody’s new ratings of ARPS for the following Pioneer closed-end funds:
Pioneer Floating Rate Trust (NYSE: PHD)
Pioneer High Income Trust (NYSE: PHT)
Pioneer Municipal High Income Trust (NYSE: MHI)
Pioneer Municipal High Income Advantage Trust (NYSE: MAV)
Previously, all of the ARPS of the above funds were rated Aaa by Moody’s. Moody’s is one of two nationally recognized statistical rating organizations currently rating the fund’s ARPS. Under the terms of each fund’s statement of preferences for ARPS, the ratings downgrades will result in higher dividend rates on the ARPS for PHD and MHI.