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Article: Fitch Applies Its New Ratings Criteria Resulting in a Rating Downgrade of Fund's AMPS.
- Article from:
- Business Wire
- Article date:
- November 4, 2009
CopyrightCOPYRIGHT 2009 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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DENVER -- The Reaves Utility Income Fund (NYSE Amex: UTG) was recently informed by Fitch Ratings that the rating on the Fund's Auction Market Preferred Shares (AMPS) had been downgraded from "AAA" to "A" based on Fitch's application of its new rating standards on sector funds. As a result, the cost of the AMPS as leverage increased from 125 basis points over LIBOR to 200 basis points over LIBOR. Fitch also indicated that this result was part of its review of sector funds as a whole. The Fund has not made any fundamental change to its investment strategy or objective and currently maintains compliance with the applicable asset coverage rules under the Investment Company ...