Moody's rates Gabelli preferreds Aa3

Moody's Investors Service said it assigned an Aa3 rating to 5.375% series H fixed rate preferred shares issued by Gabelli Dividend & Income Trust.

Moody's also said it affirmed the Aa3 ratings on Gabelli's outstanding preferred shares.

The fund's leverage is expected to remain the same as the net proceeds from new preferred share offering will be used to redeem an equal amount of its outstanding series E auction-rate preferred shares, the agency explained.

The ratings reflect the fund's strong asset coverage and diversification among sectors and issuers, Moody's said.

The ratings also are driven by the portfolio's relatively low leverage and an expectation that the fund's investment portfolio will exhibit less volatility than a portfolio of mid- to small-cap or less defensive stocks, the agency said.

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