Moody’s cuts Gabelli preferreds

Moody's Investors Service said it assigned an A2 rating to Gabelli Multimedia Trust, Inc.’s $50 million 5.125% series E cumulative preferred shares.

Additionally, the agency downgraded the $19.8 million 6% series B cumulative preferred shares to A2 from A1 and the series C auction-rate preferred shares to A2 from A1.

Moody’s said the actions reflect the impact of the increase in fund leverage from about $20 million to $70 million.

“The additional leverage weakens the fund's risk-adjusted asset and fixed charge coverage metrics. Though the fund maintains an Aaa level of risk-adjusted asset coverage, it is now weakly positioned within the Aaa parameter for this rating factor,” the agency said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.