Fitch Affirms Pioneer Closed-End-Fund Preferred Shares at 'AAA'

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)

A complete list of rated AMPS series follows at the end of this press release.

KEY RATING DRIVERS

The 'AAA' rating affirmation reflects:

-- Sufficient asset coverage provided to the AMPS by the underlying asset portfolios;

-- 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, 2014, MHI's total assets were approximately $407 million and total leverage was approximately $101 million in Fitch-rated AMPS, or 25% of total assets. MAV's total assets were approximately $450 million and total leverage was approximately $150 million in Fitch-rated AMPS, or 33% of total assets.

ASSET COVERAGE

At the time of the 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.

The Fitch OC tests calculate standardized asset coverage by applying haircuts to portfolio holdings based on riskiness and diversification of the assets and measuring their ability to cover both on- and off-balance sheet liabilities at the stress level that corresponds to the assigned rating.

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 (the 1940 Act), were in excess of 200%, which is also a minimum asset coverage required by the funds' governing documents.

STRUCTURAL PROTECTIONS

Should the AMPS Fitch OC and asset coverage tests decline below their minimum threshold amounts (as tested weekly), the funds' managers are required to cure the breach by altering the composition of the portfolio toward assets with lower discount factors (for Fitch OC test breaches), or by reducing leverage in a sufficient amount (for both the Fitch OC test and 1940 Act asset coverage test breaches) within a pre-specified time period (a maximum of 40 business days).

FUNDS PROFILE

PIONEER MUNICIPAL HIGH INCOME TRUST (MHI):

MHI is a diversified closed-end management investment company, registered under the 1940 Act, 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 1940 Act, 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.

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 Nov. 30, 2014, Pioneer Global Asset Management S.p.A. had approximately $248 of assets under management, of which approximately $72 billion was managed in the U.S.

Fitch affirms the following ratings at 'AAA'

Pioneer Municipal High Income Trust (MHI):

--$50,000,000 of AMPS, series A, with a liquidation preference of $25,000 per share;

--$51,000,000 of AMPS, series B, with a liquidation preference of $25,000 per share.

Pioneer Municipal High Income Advantage Trust (MAV):

--$75,000,000 of AMPS, series A, with a liquidation preference of $25,000 per share;

--$75,000,000 of AMPS, series B, with a liquidation preference of $25,000 per share.

RATINGS SENSITIVITIES

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' (Sept. 4, 2014);

--'2015 Outlook: Closed-End Funds' (Dec. 10, 2015).

Applicable Criteria and Related Research:

2015 Outlook: Closed-End Funds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=824608

Rating Closed-End Fund Debt and Preferred Stock

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=765528

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=980515

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts:

Fitch Ratings
Primary Analyst
Gwen Fink-Stone, J.D.
Associate Director
+1-212-908-9128
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Yuriy Layvand, CFA
Director
+1-212-908-9191
or
Committee Chairperson
Ian Rasmussen
Senior Director
+1-212-908-0232
or
Media Relations
Alyssa Castelli, +1-212-908-0540
New York
alyssa.castelli@fitchratings.com
or
Elizabeth Fogerty, +1-212-908-0526
New York
elizabeth.fogerty@fitchratings.com

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