BLACKROCK MUNIYIELD PENNSYLVANIA QUALITY FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-07136

Name of Fund: BlackRock MuniYield Pennsylvania Quality Fund (MPA)

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield

Pennsylvania Quality Fund, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2019

Date of reporting period: 10/31/2018

 

Item 1 – Schedule of Investments

Schedule of Investments  (unaudited)

October 31, 2018

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)		      Value  

Municipal Bonds — 117.8%

 

Pennsylvania — 117.8%  
Corporate — 2.9%  

County of Beaver Pennsylvania IDA, Refunding RB, First Energy Nuclear Energy Project, Series B,
3.50%, 12/01/35(a)(b)(c)

   $ 1,845      $ 1,309,950  

Pennsylvania Economic Development Financing Authority, RB:

     

American Water Co. Project,
6.20%, 04/01/39

     1,510        1,533,692  

Aqua Pennsylvania, Inc. Project,
Series B, 4.50%, 12/01/42

     2,630        2,684,914  

Pennsylvania Economic Development Financing Authority,
Refunding RB, AMT:

     

Aqua Pennsylvania, Inc. Project,
Series A, 5.00%, 12/01/34

     180        187,427  

National Gypsum Co.,
5.50%, 11/01/44

     135        139,519  
    

 

 

  
       5,855,502  
County/City/Special District/School District — 28.4%  

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:

     

5.00%, 05/01/35

     190        195,082  

5.00%, 05/01/42

     450        458,662  

Altoona Area School District, GO:

     

5.00%, 12/01/36

     125        136,501  

5.00%, 12/01/45

     600        647,406  

Bethlehem Area School District, GO (BAM), Series A:

     

5.00%, 08/01/34

     1,610        1,775,299  

5.00%, 08/01/35

     1,210        1,331,920  

Borough of West Chester Pennsylvania, GO, Refunding, 3.50%, 11/15/35

     1,095        1,050,072  

Boyertown Area School District, GO:

     

5.00%, 10/01/36

     610        661,643  

5.00%, 10/01/38

     920        995,035  

City of Philadelphia Pennsylvania, GO, Refunding, Series A (AGM),
5.25%, 12/15/18(d)

     2,000        2,008,160  

City of Philadelphia Pennsylvania, GO, Refunding Series A (AGC):

     

5.00%, 08/01/19(d)

     255        260,811  

5.00%, 08/01/24

     2,115        2,159,690  

City of Pittsburgh Pennsylvania, GO,
Series B, 5.00%, 09/01/26

     1,095        1,193,112  

County of Bucks Pennsylvania Water & Sewer Authority, RB, Series A (AGM):

     

5.00%, 12/01/37

     780        860,176  

5.00%, 12/01/40

     1,000        1,099,300  
Security   Par
(000)		      Value  
County/City/Special District/School District (continued)  

County of Dauphin General Authority, Refunding RB, Pinnacle Health System Project, 6.00%, 06/01/29

   $ 260      $ 265,374  

County of Delaware Springfield School District, GO:

     

5.00%, 03/01/40

     1,025        1,139,544  

5.00%, 03/01/43

     775        859,653  

County of Lycoming Pennsylvania Water & Sewer Authority, RB (AGM),
5.00%, 11/15/19(d)

     500        515,250  

County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 07/01/32

     170        189,958  

County of York Pennsylvania, GO, Refunding, 5.00%, 09/01/20(d)

     500        525,340  

Dallastown Area School District, GO, Refunding, 5.00%, 04/15/34

     1,235        1,365,169  

Fox Chapel Area School District, GO:

     

5.00%, 02/01/39

     1,345        1,489,386  

5.00%, 02/01/42

     1,250        1,378,537  

Marple Newtown School District, GO, (AGM), 5.00%, 06/01/19(d)

     4,100        4,173,677  

Shaler Area School District Pennsylvania, GO, CAB (Syncora), 0.00%, 09/01/30(e)

     6,145        3,996,401  

Springfield School District/Delaware County, GO:

     

5.00%, 03/01/36

     870        977,497  

5.00%, 03/01/37

     890        997,708  

State Public School Building Authority,
RB (AGM):

     

Community College, Allegheny County Project, 5.00%, 07/15/34

     2,190        2,325,648  

Corry Area School District, CAB,
0.00%, 12/15/22(e)

     1,640        1,446,562  

Corry Area School District, CAB,
0.00%, 12/15/23(e)

     1,980        1,686,386  

Corry Area School District, CAB,
0.00%, 12/15/24(e)

     1,980        1,623,541  

Corry Area School District, CAB,
0.00%, 12/15/25(e)

     1,770        1,397,185  

State Public School Building Authority, Refunding RB, Harrisburg School District Project, Series A (AGC) :

     

5.00%, 05/15/19(d)

     645        1,306,486  

Township of Bristol Pennsylvania School District, GO:

     

5.00%, 06/01/40

     775        822,438  
 

 

 

     1  

Schedule of Investments  (unaudited) (continued)

October 31, 2018

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)		      Value  
County/City/Special District/School District (continued)  

Township of Bristol Pennsylvania School District, GO (continued):

     

5.25%, 06/01/43

   $ 6,925      $ 7,445,760  

(BAM), 5.00%, 06/01/42

     1,685        1,815,183  

Township of Falls Pennsylvania, Refunding RB, Water & Sewer Authority, 5.00%, 12/01/37

     1,270        1,358,875  

Township of Lower Paxton Pennsylvania, GO:

     

5.00%, 04/01/42

     435        474,985  

5.00%, 04/01/46

     1,435        1,563,920  
    

 

 

  
       55,973,332  
Education — 22.6%  

County of Adams Pennsylvania IDA, Refunding RB, Gettysburg College,
5.00%, 08/15/26

     100        104,355  

County of Cumberland Pennsylvania Municipal Authority, RB, AICUP Financing Program, Dickinson College Project, 5.00%, 11/01/19(d)

     200        205,774  

County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:

     

6.38%, 01/01/19(d)

     900        906,291  

6.38%, 01/01/39

     100        100,724  

County of Delaware Pennsylvania Authority, RB, Villanova University:

     

5.00%, 08/01/40

     1,205        1,324,885  

5.00%, 08/01/45

     3,610        3,957,715  

County of Delaware Pennsylvania Authority, Refunding RB:

     

Cabrini University, 5.00%, 07/01/47

     2,480        2,566,205  

Villanova University, 5.25%, 12/01/19(d)

     100        103,379  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jeferson University, Series A:

     

5.00%, 09/01/48

     1,500        1,612,020  

5.00%, 09/01/37

     840        916,961  

County of Northampton Pennsylvania General Purpose Authority, Refunding RB:

     

Lafayette College, 4.00%, 11/01/38

     1,160        1,150,534  

Moravian College, 5.00%, 10/01/36

     610        647,613  

St. Luke’s University Health Network Project, 5.00%, 08/15/46

     1,000        1,066,970  
Security   Par
(000)		      Value  
Education (continued)  

County of Northampton Pennsylvania General Purpose Authority, Refunding RB (continued):

     

St. Lukes University Health Network, 5.00%, 08/15/48

   $ 1,125      $ 1,207,755  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/36

     2,000        2,202,860  

Pennsylvania Higher Educational Facilities Authority, RB, Thomas Jefferson University,
5.00%, 03/01/20(d)

     1,000        1,036,350  

Pennsylvania Higher Educational Facilities Authority, RB,Series AT-1, 4.00%, 06/15/34

     2,000        2,019,580  

Pennsylvania Higher Educational Facilities Authority, Refunding RB:

     

Drexel University, Series A,
5.25%, 05/01/21(d)

     3,700        3,973,689  

Drexel University, Series A,
5.25%, 05/01/41

     230        243,216  

La Salle University, 5.00%, 05/01/37

     1,325        1,374,489  

La Salle University, 5.00%, 05/01/42

     1,855        1,915,974  

State System of Higher Education,
Series AL, 5.00%, 06/15/35

     280        290,990  

Thomas Jefferson University,
5.00%, 09/01/45

     2,000        2,157,160  

University Properties, Inc. Student Housing Project, Series A,
5.00%, 07/01/35

     300        313,173  

Widener University, Series A,
5.25%, 07/15/33

     1,580        1,670,060  

Widener University, Series A,
5.50%, 07/15/38

     385        406,298  

Philadelphia Authority for Industrial Development, RB, University of Sciences, 5.00%, 11/01/42

     2,710        2,921,814  

Philadelphia Authority for Industrial Development, Refunding RB:

     

1st Series, 5.00%, 04/01/45

     2,170        2,352,888  

La Salle University, 4.00%, 05/01/42

     2,985        2,733,394  

Swarthmore Borough Authority, Refunding RB, Swarthmore College Project, 5.00%, 09/15/38

     830        916,934  
 

 

 

2   

Schedule of Investments  (unaudited) (continued)

October 31, 2018

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)		      Value  
Education (continued)  

Township of East Hempfield Pennsylvania IDA, RB, Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania:

     

5.00%, 07/01/35

   $ 485      $ 506,054  

5.00%, 07/01/35

     435        456,567  

5.00%, 07/01/45

     300        310,566  

5.00%, 07/01/47

     820        850,496  
    

 

 

  
       44,523,733  
Health — 19.1%  

City of Pottsville Pennsylvania Hospital Authority, Refunding RB, Lehigh Valley Health, Series B,
5.00%, 07/01/41

     3,000        3,215,670  

County of Allegheny Hospital Development Authority, Refunding RB, Allegheny Health Network Obligated Group Issue, Series A:

     

4.00%, 04/01/37

     1,700        1,623,024  

5.00%, 04/01/47

     700        739,249  

County of Allegheny Pennsylvania Hospital Development Authority, RB, University of Pittsburgh Medical Center Health, Series B (NPFGC), 6.00%, 07/01/26

     2,000        2,417,120  

County of Berks Pennsylvania Municipal Authority, Refunding RB, Reading Hospital & Medical Center Project:

     

Series A, 5.00%, 11/01/40

     765        805,300  

Series A3, 5.50%, 11/01/19(d)

     250        257,943  

Series A3, 5.50%, 11/01/31

     250        257,993  

County of Bucks Pennsylvania IDA, Refunding RB, Pennswood Village Project, 5.00%, 10/01/37

     940        1,008,413  

County of Centre Pennsylvania Hospital Authority, RB, Mount Nittany Medical Center Project, 7.00%, 11/15/21(d)

     2,410        2,738,025  

County of Chester Health & Education Facilities Authority, Refunding RB, Main Line Health System, Series A, 5.00%, 10/01/52

     2,290        2,465,551  

County of Cumberland Pennsylvania Municipal Authority, Refunding RB:

     

Asbury Pennsylvania Obligated Group, 5.25%, 01/01/41

     210        213,221  

Diakon Lutheran Social Ministries, 5.00%, 01/01/38

     2,600        2,730,520  
Security   Par
(000)		      Value  
Health (continued)  

County of Dauphin General Authority, Refunding RB, Pinnacle Health System Project, 6.00%, 06/01/19(d)

   $ 240      $ 245,621  

County of Franklin Pennsylvania IDA, Refunding RB, Chambersburg Hospital Project, 5.38%, 07/01/42

     415        432,857  

County of Lancaster Pennsylvania Hospital Authority, Refunding RB, Masonic Villages of The Grand Lodge of Pennsylvania Project:

     

5.00%, 11/01/28

     575        627,181  

5.00%, 11/01/35

     425        452,357  

County of Montgomery Pennsylvania Higher Education & Health Authority, Refunding RB, Abington Memorial Hospital Obligated Group, Series A, 5.13%, 06/01/19(d)

     490        498,727  

County of Montgomery Pennsylvania IDA, RB, Acts Retirement-Life Communities, Series A-1, 6.25%, 11/15/19(d)

     235        245,164  

County of Montgomery Pennsylvania IDA, Refunding RB:

     

Acts Retirement-Life Communities, 5.00%, 11/15/27

     865        912,800  

Acts Retirement-Life Communities, 5.00%, 11/15/28

     555        583,777  

Whitemarsh Continuing Care Retirement Community, 5.25%, 01/01/40

     220        214,766  

County of Union Pennsylvania Hospital Authority, Refunding RB, Evangelical Community Hospital Project, 7.00%, 08/01/21(d)

     460        517,739  

County of Wayne Hospital & Health Facilites Authority, RB, Wayne Memorial Hospital Project, Series A, 4.00%, 07/01/46

     1,595        1,510,529  

DuBois Hospital Authority, Refunding RB, Penn Highlands Healthcare,
4.00%, 07/15/48

     2,060        1,917,572  

Geisinger Authority Pennsylvania, Refunding RB, Health System, Series A-2, 5.00%, 02/15/39

     4,050        4,416,525  

Lancaster IDA, Refunding RB, Garden Spot Village Project:

     

5.38%, 05/01/28

     520        559,796  

5.75%, 05/01/35

     865        935,982  
 

 

 

     3  

Schedule of Investments  (unaudited) (continued)

October 31, 2018

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)		      Value  
Health (continued)  

Pennsylvania Higher Educational Facilities Authority, Refunding RB, University of Pittsburgh Medical Center, Series E, 5.00%, 05/15/31

   $ 1,000      $ 1,038,660  

Philadelphia Hospitals & Higher Education Facilities Authority, RB, The Children’s Hospital of Philadelphia Project,
Series C, 5.00%, 07/01/41

     940        991,211  

Philadelphia Hospitals & Higher Education Facilities Authority, Refunding RB, Presbyterian Medical Center, 6.65%, 12/01/19(f)

     900        925,029  

South Fork Municipal Authority, Refunding RB, Conemaugh Valley Memorial Hospital, Series B (AGC),
5.38%, 07/01/20(d)

     2,055        2,157,853  
    

 

 

  
       37,656,175  
Housing — 6.9%  

City of Philadelphia Pennsylvania, GO, Refunding, Series A, 5.00%, 08/01/37

     1,360        1,476,198  

Pennsylvania HFA, RB:

     

Brinton Manor Apartments & Brinton Towers, M/F Housing, Series A, 4.25%, 10/01/35

     400        367,296  

Brinton Manor Apartments & Brinton Towers, M/F Housing, Series A, 4.50%, 10/01/40

     400        366,556  

S/F Housing Mortgage, Series 114-C, 3.65%, 10/01/37

     1,705        1,659,442  

S/F Housing Mortgage, Series 118-B, 4.05%, 10/01/40

     1,000        992,790  

S/F Housing Mortgage, Series 2015-117-B, 4.05%, 10/01/40

     1,600        1,595,344  

Philadelphia Housing Authority, RB, Capital Fund Program, M/F Housing, Series A (AGM), 5.50%, 12/01/18

     3,000        3,008,760  

Philadelphia IDA, RB, Series A:

     

3.50%, 12/01/36

     790        721,357  

4.00%, 12/01/46

     2,970        2,743,389  

4.00%, 12/01/51

     790        706,126  
    

 

 

  
       13,637,258  
State — 5.8%  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment, 5.00%, 06/01/35

     1,295        1,412,262  
Security   Par
(000)		      Value  
State (continued)  

Commonwealth of Pennsylvania, GO, 1st Series, 5.00%, 06/01/22(d)

   $ 2,460      $ 2,694,094  

Pennsylvania Economic Development Financing Authority, RB, AMT,
5.00%, 06/30/42

     7,000        7,311,920  
    

 

 

  
       11,418,276  
Transportation — 19.9%  

City of Philadelphia Pennsylvania, ARB,
Series A, 5.00%, 06/15/40

     3,825        3,952,296  

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB, AMT, Series B:

     

5.00%, 07/01/37

     1,100        1,187,340  

5.00%, 07/01/47

     2,105        2,246,624  

Delaware River Joint Toll Bridge Commission, RB, Bridge System, 5.00%, 07/01/42

     1,500        1,660,920  

Delaware River Port Authority, RB:

     

5.00%, 01/01/29

     475        523,697  

5.00%, 01/01/37

     2,285        2,487,200  

Series D, 5.00%, 01/01/40

     750        768,390  

Series D (AGM), 5.00%, 01/01/40

     1,560        1,601,870  

Pennsylvania Economic Development Financing Authority, Refunding RB, Amtrak Project, Series A, AMT, 5.00%, 11/01/41

     6,025        6,327,274  

Pennsylvania Turnpike Commission, RB:

     

CAB, Sub-Series A-3, 0.00%, 12/01/42(e)

     4,760        1,566,135  

CAB, Sub-Series A-3 (AGM),
0.00%, 12/01/40(e)

     1,275        470,118  

Sub-Series B, 5.25%, 12/01/48

     1,930        2,153,919  

Sub-Series B-1, 5.00%, 06/01/42

     2,345        2,487,576  

Pennsylvania Turnpike Commission, Refunding RB:

     

Sub-Series A-1, 5.25%, 12/01/45

     3,270        3,557,597  

Sub-Series B (AGM),
5.25%, 06/01/19(d)

     3,500        3,566,920  

Southeastern Pennsylvania Transportation Authority, RB, Capital Grant Receipts(d):

     

5.00%, 06/01/21

     1,860        1,989,921  
 

 

 

4   

Schedule of Investments  (unaudited) (continued)

October 31, 2018

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)		      Value  
Transportation (continued)  

Southeastern Pennsylvania Transportation Authority, RB, Capital Grant
Receipts(d) (continued):

     

5.00%, 06/01/21

   $ 2,465      $ 2,637,180  
    

 

 

  
       39,184,977  
Utilities — 12.2%  

City of Philadelphia Pennsylvania Gas Works, RB, 9th Series:

     

5.25%, 08/01/20(d)

     660        694,294  

5.25%, 08/01/40

     1,040        1,088,734  

City of Philadelphia Pennsylvania Gas Works, Refunding RB:

     

5.00%, 08/01/30

     800        884,168  

5.00%, 08/01/31

     600        661,602  

5.00%, 08/01/32

     800        879,592  

5.00%, 08/01/33

     400        438,528  

5.00%, 08/01/34

     700        765,660  

City of Philadelphia Pennsylvania Water & Wastewater, RB:

     

Series A, 5.25%, 01/01/19(d)

     800        804,472  

Series A, 5.25%, 10/01/52

     810        899,367  

Series C (AGM), 5.00%, 08/01/40

     3,350        3,481,655  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

     

5.00%, 06/01/33

     3,575        3,925,743  

5.00%, 06/01/34

     4,175        4,570,540  

(AGM), 4.00%, 06/01/39

     1,250        1,225,888  

County of Allegheny Pennsylvania Sanitary Authority, RB, Sewer Improvement (BAM),
5.25%, 12/01/41

     1,410        1,552,847  

County of Delaware Pennsylvania Regional Water Quality Control Authority, RB, Sewer Improvements, 5.00%, 05/01/23(d)

     420        467,237  

Pennsylvania Economic Development Financing Authority, RB, Philadelphia Biosolids Facility, 6.25%, 01/01/32

     1,605        1,657,981  
    

 

 

  
       23,998,308  
    

 

 

  

Total Municipal Bonds — 117.8%
(Cost — $228,841,555)

 

      232,247,561  
    

 

 

  
Security   Par
(000)		      Value  

Municipal Bonds Transferred to Tender Option Bond Trusts(g)

 

Pennsylvania — 51.1%  
Education — 17.5%  

County of Northampton General Purpose Authority, Refunding RB, Lafayette College, 5.00%, 11/01/47

   $ 3,900      $ 4,281,869  

Pennsylvania Higher Educational Facilities Authority, RB:

     

State System of Higher Education, Series AR, 4.00%, 06/15/38

     11,335        11,371,882  

University of Pennsylvania Health System, Series A, 5.75%, 08/15/21(d)

     5,120        5,601,459  

University of Pennsylvania Health System, Series A, 4.00%, 08/15/39

     7,815        7,850,099  

Philadelphia Authority for Industrial Development, RB, Philadelphia College of osteopathic Medicine, 4.00%, 12/01/48(h)

     3,300        3,128,367  

University of Pittsburgh Pennsylvania, RB, The Commonwealth System of Higher Education, Capital Project, Series B, 5.00%, 03/15/19(d)

     2,202        2,227,289  
    

 

 

  
       34,460,965  
Health — 13.6%  

Geisinger Authority Pennsylvania, RB, Health System:

     

Series A, 5.13%, 06/01/19(d)

     3,000        3,053,235  

Series A, 5.25%, 06/01/19(d)

     3,128        3,185,047  

Series A-1, 5.13%, 06/01/41

     7,430        7,864,606  

Pennsylvania Economic Development Financing Authority, RB, University of Pittsburgh Medical Center,
Series B, 4.00%, 03/15/40

     8,000        7,808,560  

Philadelphia Hospitals & Higher Education Facilities Authority, RB, The Children’s Hospital of Philadelphia Project, Series C, 5.00%, 07/01/41

     4,680        4,932,042  
    

 

 

  
       26,843,490  
Housing — 1.2%  

Pennsylvania HFA, Refunding RB, S/F Mortgage, Series 114A, AMT,
3.70%, 10/01/42

     2,635        2,463,940  
    

 

 

  
State — 14.9%  

Commonwealth of Pennsylvania, GO,
1st Series:

     

4.00%, 03/01/38(h)

     6,000        5,928,060  

5.00%, 03/15/19(d)

     6,028        6,098,296  
 

 

 

     5  

Schedule of Investments  (unaudited) (continued)

October 31, 2018

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)		     Value  
State (continued)  

General Authority of Southcentral Pennsylvania, Refunding RB, Wellspan Health Obligated Group, Series A, 5.00%, 06/01/44

   $ 7,000     $ 7,436,625  

Pennsylvania Turnpike Commission, RB, Oil Franchise Tax, Remarketing, Series C (NPFGC), 5.00%, 12/01/18(d)

     10,000       10,025,500  
   

 

 

  
    29,488,481  
Transportation — 2.0%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

     1,680       1,880,642  

Pennsylvania Turnpike Commission, Refunding RB, Sub Series B-2 (AGM), 5.00%, 06/01/35

     1,850       2,016,861  
   

 

 

  
      3,897,503  
Utilities — 1.9%  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB (BAM),
5.00%, 08/15/42

     3,493       3,756,550  
   

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 51.1%
(Cost — $100,418,303)

 

     100,910,929  
 

 

 

  

Total Long-Term Investments — 168.9%
(Cost — $329,259,858)

 

     333,158,490  
 

 

 

  

 

Security  

Shares

     Value  
Short-Term Securities — 0.8%  

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.45%(i)(j)

     1,539,943     $ 1,540,097  
   

 

 

  

Total Short-Term Securities — 0.8%
(Cost — $1,540,097)

 

     1,540,097  
 

 

 

  

Total Investments — 169.7%
(Cost — $330,799,955)

 

     334,698,587  

Other Assets Less Liabilities — 2.1%

 

     3,894,014  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (30.0)%

 

     (59,062,598 ) 

VRDP Shares at Liquidation Value,
Net of Deferred Offering Costs — (41.8)%

 

     (82,344,656 ) 
 

 

 

  

Net Assets Applicable to Common
Shares — 100.0%

 

   $ 197,185,347  
 

 

 

  

 

 
(a) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(b) 

Issuer filed for bankruptcy and/or is in default.

(c) 

Non-income producing security.

(d) 

U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(e) 

Zero-coupon bond.

(f) 

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(g) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing.

(h) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expires between March 1, 2026 to June 1, 2039, is $4,773,503.

(i) 

Annualized 7-day yield as of period end.

 

 

6   

Schedule of Investments  (unaudited) (continued)

October 31, 2018

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

 

(j) 

During the period ended October 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate   

Shares
Held at

07/31/18

      Net
Activity		      Shares
Held at
10/31/18		      Value at
10/31/18		      Income      Net
Realized
Gain (Loss) (a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, MuniCash, Institutional Class

      562,341        977,602        1,539,943      $ 1,540,097      $ 4,292      $ (2 )     $ (54 ) 
           

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Portfolio Abbreviations

AGC — Assured Guarantee Corp.

AGM — Assured Guaranty Municipal Corp.

AMT — Alternative Minimum Tax (subject to)

ARB — Airport Revenue Bonds

BAM — Build America Mutual Assurance Co.

CAB — Capital Appreciation Bonds

GO — General Obligation Bonds

HFA — Housing Finance Agency

IDA — Industrial Development Authority

M/F — Multi-Family

NPFGC — National Public Finance Guarantee Corp.

RB — Revenue Bonds

S/F — Single-Family

Syncora — Syncora Guarantee

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		        Expiration
Date		        Notional
Amount (000)		        Value/
Unrealized
Appreciation
(Depreciation)		  

Short Contracts:

                  

10-Year U.S. Treasury Note

      13          12/19/18        $ 1,540        $ 8,216  

Long U.S. Treasury Bond

      57          12/19/18          7,873          198,762  

5-Year U.S. Treasury Note

      14          12/31/18          1,573          9,011  
                 

 

 

  
                  $ 215,989  
                 

 

 

  

 

 

     7  

Schedule of Investments  (unaudited) (continued)

October 31, 2018

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

 

  •  

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

  •  

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $ —        $ 333,158,490        $ —        $ 333,158,490  

Short-Term Securities

     1,540,097          —          —          1,540,097  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 1,540,097        $ 333,158,490        $ —        $ 334,698,587  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 215,989        $ —        $ —        $ 215,989  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a) 

See above Schedule of Investments for values in each sector.

 
  (b) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

 

TOB Trust Certificates

   $ —        $ (58,866,387 )       $ —        $ (58,866,387 ) 

VRDP Shares at Liquidation Value

     —          (82,600,000 )         —          (82,600,000 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  
   $             —        $ (141,466,387 )       $             —        $ (141,466,387 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

During the period ended October 31, 2018, there were no transfers between levels.

 

 

8   

Item 2 –   Controls and Procedures
2(a) –   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) –   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3 –   Exhibits
  Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock MuniYield Pennsylvania Quality Fund

 

By:     /s/ John M. Perlowski                
        John M. Perlowski
        Chief Executive Officer (principal executive officer) of
        BlackRock MuniYield Pennsylvania Quality Fund

Date: December 19, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:     /s/ John M. Perlowski                
        John M. Perlowski
        Chief Executive Officer (principal executive officer) of
        BlackRock MuniYield Pennsylvania Quality Fund

Date: December 19, 2018

 

By:     /s/ Neal J. Andrews                  
        Neal J. Andrews
        Chief Financial Officer (principal financial officer) of
        BlackRock MuniYield Pennsylvania Quality Fund

Date: December 19, 2018