Fitch Affirms VMTP Shares Issued by 9 Invesco Closed-End Funds at 'AAA'

Fitch Ratings has affirmed the 'AAA' ratings on the Variable Rate Muni Term Preferred Shares (VMTP Shares) issued by nine municipal closed-end funds managed by Invesco Advisers, Inc. (NYSE:IVZ, Invesco). A complete list of the funds and the associated VMTP Shares is provided at the end of this release.

KEY RATING DRIVERS

The 'AAA' long-term ratings primarily reflect:

--Sufficient asset coverage provided to the preferred shares as calculated per the funds' overcollateralization (OC) tests;

--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 Invesco as investment advisor.

LEVERAGE

As of March 31, 2016, effective leverage ratios for the funds ranged from 34% to 41%. The funds generally leverage with both tender option bonds (TOBs) and Fitch-rated VMTPs.

ASSET COVERAGE

As of March 31, 2016, each fund's asset coverage ratio for the preferred shares, as calculated in accordance with the 'AAA' Fitch total and net overcollateralization tests (Fitch OC Tests) outlined in Fitch's criteria, was in excess of 100%. This is the minimum threshold required under the terms of the preferred shares.

As of the same date, the funds' asset coverage ratios for total outstanding preferred shares, as calculated in accordance with the Investment Company Act of 1940, was in excess of the minimum asset coverage of 225% required by the funds' governing documents (Preferred Shares Asset Coverage Test).

The funds' effective leverage ratios were below the 45% maximum leverage ratio allowed by the funds' governing documents for the VMTP shares. Leverage employed through TOBs is not captured by the funds' 225% asset coverage test but is captured by both the effective leverage ratio tests and Fitch OC tests.

In the event of breaches to any of the above thresholds, the funds are required to restore compliance per structural protections described below.

STRUCTURAL PROTECTIONS

Compliance with the Fitch OC, Asset Coverage, and Effective Leverage thresholds are tested periodically. The fund manager is expected to cure any breach by altering the composition of the portfolio toward assets with lower discount factors (for Fitch OC breaches), or by reducing leverage in a sufficient amount (for all other breaches) within a pre-specified time period.

FUND PROFILES

The funds are closed-end management investment companies regulated by the Investment Company Act of 1940. The funds invest primarily in municipal securities that are rated investment grade by at least one nationally recognized statistical rating organization and that are exempt from federal taxes.

Municipal obligations include municipal bonds, municipal notes, municipal commercial paper, and lease obligations. The funds may also may invest up to 20% of its net assets in non-investment-grade and unrated securities that are determined to be of comparable quality.

THE ADVISER

Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd., is the funds' adviser, responsible for the funds' overall investment strategies and their implementation. Invesco Ltd. had approximately $771.5 billion of assets under management as of March 31, 2016.

RATING SENSITIVITIES

The ratings assigned to the preferred shares may be sensitive to material changes in the leverage composition, portfolio credit quality or market risk of the funds, as described above. A material adverse deviation from Fitch guidelines for any key rating driver could cause ratings to be lowered by Fitch. The funds have the ability to assume economic leverage through derivative transactions which may not be captured by the funds' Preferred Shares Asset Coverage test or Effective Leverage Ratio. However, economic leverage assumed through derivative transactions is captured by the Fitch overcollateralization tests for calculating asset coverage ratios of the rated VMTP shares.

The funds currently do not engage in derivative activities for speculative purposes and do not envision engaging in such activity in the future. Material derivative exposure in the future could have potential negative rating implications if it adversely affects asset coverage available to rated preferred shares.

RATING SENSITIVITIES

Fitch has affirmed the following ratings:

--Invesco Advantage Municipal Income Trust II (VKI)

$231,000,000 of VMTP Shares at 'AAA';

--Invesco California Value Municipal Income Trust (VCV)

$188,300,000 of VMTP Shares at 'AAA';

--Invesco Municipal Opportunity Trust (VMO)

$367,600,000 of VMTP Shares at 'AAA';

--Invesco Municipal Trust (VKQ)

$262,800,000 of VMTP Shares at 'AAA';

--Invesco Pennsylvania Value Municipal Income Trust (VPV)

$130,100,000 of VMTP Shares at 'AAA';

--Invesco Quality Municipal Income Trust (IQI)

$213,900,000 of VMTP Shares at 'AAA';

--Invesco Trust for Investment Grade Municipals (VGM)

$273,300,000 of VMTP Shares at 'AAA';

--Invesco Trust for Investment Grade New York Municipals (VTN)

$90,400,000 of VMTP Shares at 'AAA';

--Invesco Value Municipal Income Trust (IIM)

$193,100,000 of VMTP Shares at 'AAA'.

For additional information about Fitch rating guidelines applicable to debt and preferred stock issued by closed-end funds, please review the criteria referenced below, which can be found at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Rating Closed-End Fund Debt and Preferred Stock (pub. 16 Sep 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=871119

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1003505

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1003505

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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