Fitch Ratings has affirmed the 'AAA' ratings assigned to the auction
market preferred shares (AMPS) issued by the following closed-end funds
managed by Pioneer Investments Management (Pioneer):
--Pioneer Municipal High Income Trust (NYSE: MHI)
--Pioneer Municipal High Income Advantage Trust (NYSE: MAV)
--Pioneer High Income Trust (NYSE: PHT)
A complete list of rated AMPS series follows at the end of this press
release.
As per publicly available information, the Pioneer High Income Trust
preferred shares will be paid in full in mid-March.
KEY RATING DRIVERS
The 'AAA' rating affirmations reflect:
-- Sufficient asset coverage provided to the AMPS by the underlying
portfolios of assets;
-- The structural protections afforded by mandatory de-leveraging
provisions in the event of asset coverage declines;
-- The legal and regulatory parameters that govern the funds' operations;
-- The capabilities of Pioneer as investment advisor.
LEVERAGE
As of Dec.31, 2013, MHI's total assets were approximately $391 million
and total leverage was approximately $101 million in AMPS or 26% of
total assets.
MAV's total assets were approximately $423 million and total leverage
was approximately $150 million, or 35% of total assets.
PHT's total assets were approximately $555 million and total leverage
was approximately $151 million, or 27% of total assets.
ASSET COVERAGE
At the time of the rating affirmations, the funds' asset coverage
ratios, as calculated in accordance with the Fitch total and net
overcollateralization tests (Fitch OC tests) per the 'AAA' rating
guidelines outlined in Fitch's applicable criteria, were in excess of
100%, which is the minimum asset coverage amount deemed consistent with
an 'AAA' rating. The funds' governing documents require that asset
coverage for the AMPS, as calculated in accordance with the Fitch OC
tests, be maintained in excess of 100%. Should the asset coverage
decline below 100%, the governing documents require the funds to restore
compliance within a 40 business day period.
Additionally, as of the same date, the funds' asset coverage ratios for
total outstanding AMPS, as calculated in accordance with Pioneer's
interpretation of the Investment Company Act of 1940, were in excess of
200%, which is also a minimum asset coverage required by the funds'
governing documents.
PIONEER MUNICIPAL HIGH INCOME TRUST (MHI):
MHI is a diversified closed-end management investment company,
registered under the Investment Company Act of 1940, as amended, that
commenced investment operations in July 2003. The fund seeks to provide
a high level of current income exempt from regular federal income tax
with a secondary investment objective of capital appreciation. The fund
seeks to invest in assets consisting primarily of municipal securities,
the interest on which is exempt from regular Federal income tax and
preferred securities that are eligible to pay dividends which qualify
for the long term capital gains rate for individual investors.
PIONEER MUNICIPAL HIGH INCOME ADVANTAGE TRUST (MAV)
MAV is a diversified closed-end management company, registered under the
Investment Company Act of 1940, as amended, that commenced operations in
October 2003. The fund seeks to provide a high level of current income
exempt from regular federal income tax with a secondary investment
objective of capital appreciation. The fund seeks to invest in assets
consisting primarily of municipal securities, the interest on which is
exempt from regular Federal income tax and preferred securities that are
eligible to pay dividends which qualify for the long term capital gains
rate for individual investors.
PIONEER HIGH INCOME TRUST (PHT):
PHT is a diversified, closed-end management investment company,
registered under the 1940 Act that commenced operations in April 2002.
The fund's investment objective is to seek high current income with a
secondary objective of capital appreciation. The fund seeks to achieve
these objectives by investing at least 80% of its assets below
investment-grade (high-yield) debt securities, loans and preferred
stock. While the fund may have some exposure to emerging market debt and
international high-yield bonds, the focus is on domestic high-yield
securities. The fund may also invest up to 50% of the total assets in
illiquid securities.
THE ADVISOR
Pioneer acts as the funds' investment advisor and is a wholly owned
subsidiary of Pioneer Global Asset Management S.p.A., an investment
management arm of UniCredit Banking Group. As of Dec. 31, 2013, Pioneer
Global Asset Management S.p.A. had approximately $237 billion of assets
under management.
Fitch affirms the following ratings at 'AAA'
Pioneer Municipal High Income Trust (MHI):
--$50,000,000 of auction market preferred shares, series A, with a
liquidation preference of $25,000 per share;
--$51,000,000 of auction market preferred shares, series B, with a
liquidation preference of $25,000 per share.
Pioneer Municipal High Income Advantage Trust (MAV):
--$75,000,000 of auction market preferred shares, series A, with a
liquidation preference of $25,000 per share;
--$75,000,000 of auction market preferred shares, series B, with a
liquidation preference of $25,000 per share.
Pioneer High Income Trust (NYSE: PHT):
--$50,500,000 of auction market preferred shares, series M, with a
liquidation preference of $25,000 per share;
--$50,500,000 of auction market preferred shares, series W, with a
liquidation preference of $25,000 per share;
--$50,000,000 of auction market preferred shares, series TH, with a
liquidation preference of $25,000 per share.
RATINGS SENSITIVITY
The assigned ratings may be sensitive to material changes in the
leverage composition, portfolio credit quality or market risk of the
fund. A material adverse deviation from Fitch guidelines for any key
rating driver could cause the rating to be lowered by Fitch.
For additional information about Fitch's rating guidelines applicable to
debt and preferred stock issued by closed-end funds, please review the
criteria referenced below, which can be found on Fitch's web site at 'www.fitchratings.com'.
To receive complimentary closed-end fund research, opt-in at the
following link:
http://pages.fitchemail.fitchratings.com/FAMCEFBlankOptin/
Additional information is available at 'www.fitchratings.com'.
The sources of information used to assess these ratings were the public
domain, and Pioneer Investments.
Applicable Criteria and Related Research:
--'Rating Closed-End Fund Debt and Preferred Stock' (Aug. 14, 2013);
--'2014 Outlook: Closed-End Funds' (Jan. 14, 2014).
Applicable Criteria and Related Research:
Rating Closed-End Fund Debt and Preferred Stock
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=716220
2014 Outlook: Closed-End Funds (Structural Protections Support Rating
Stability)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726592
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=822397
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IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
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WEBSITE.
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