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: 07/31/2018

Date of reporting period: 10/31/2017

Item 1 – Schedule of Investments

Schedule of Investments  (unaudited)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

     Par
(000)		     Value  

Municipal Bonds

    
Pennsylvania — 117.9%  
Corporate — 3.1%  

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

   $ 3,745     $ 1,812,580  

Pennsylvania Economic Development Financing Authority, RB:

    

American Water Co. Project, 6.20%, 4/01/39

     1,510       1,608,452  

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

     2,630       2,731,045  

Pennsylvania Economic Development Financing Authority, Refunding RB, AMT:

    

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

     180       191,826  

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

     135       143,027  
   

 

 

  
    6,486,930  
County/City/Special District/School District — 30.1%  

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

    

5.00%, 5/01/35

     190       199,665  

5.00%, 5/01/42

     450       469,296  

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

    

5.00%, 8/01/34

     1,610       1,862,367  

5.00%, 8/01/35

     1,210       1,396,921  

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

     1,095       1,112,794  

Boyertown Area School District, GO:

    

5.00%, 10/01/36

     610       699,841  

5.00%, 10/01/38

     920       1,051,983  

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

     5,000       5,231,300  

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

    

5.00%, 8/01/19(b)

     255       271,929  

5.00%, 8/01/24

     2,115       2,250,466  

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

     1,095       1,258,035  
     Par
(000)		     Value  
County/City/Special District/School District (continued)  

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

    

5.00%, 12/01/37

   $ 780     $ 904,160  

5.00%, 12/01/40

     1,000       1,152,880  

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

     260       279,607  

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

     500       538,415  

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

     175       202,800  

County of York Pennsylvania, GO, Refunding,
5.00%, 03/01/36

     500       544,820  

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

     1,235       1,427,388  

Fox Chapel Area School District, GO:

    

5.00%, 2/01/39

     1,345       1,569,037  

5.00%, 2/01/42

     1,250       1,452,712  

Lower Merion School District, GO, Refunding,
Series A, 3.25%, 11/15/27

     2,035       2,115,749  

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

     4,100       4,347,148  

Owen J. Roberts School District, GO, 4.75%, 11/15/25

     700       713,657  

Philadelphia School District, GO, Series E(b):

    

2015, 6.00%, 9/01/18

     5       5,201  

2015-2, 6.00%, 9/01/18

     5       5,201  

6.00%, 9/01/18

     3,340       3,475,437  

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

     6,145       4,058,158  

State Public School Building Authority, RB (AGM):

    

Community College, Allegheny County Project, 5.00%, 7/15/34

     2,190       2,414,234  

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

     1,640       1,460,289  

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

     1,980       1,710,007  

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

     1,980       1,652,013  
 

 

 

SCHEDULE OF INVESTMENTS      1  

Schedule of Investments  (unaudited) (continued)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

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

State Public School Building Authority, RB (AGM) (continued):

    

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

   $ 1,770     $ 1,425,930  

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

    

5.00%, 5/15/19

     215       227,636  

5.00%, 5/15/19

     215       227,636  

5.00%, 5/15/19

     855       905,248  

Township of Bristol Pennsylvania School District, GO:

    

5.00%, 6/01/40

     775       870,596  

5.25%, 6/01/43

     6,925       7,876,287  

(BAM), 5.00%, 6/01/42

     1,685       1,899,416  

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

     1,270       1,391,387  

Township of Lower Paxton Pennsylvania, GO:

    

5.00%, 4/01/42

     435       489,732  

5.00%, 4/01/46

     1,435       1,611,074  

Township of Upper Moreland Pennsylvania School District, GO, 5.00%, 10/01/34

     130       150,154  
   

 

 

  
    62,908,606  
Education — 18.5%  

County of Adams Pennsylvania IDA, Refunding RB, Gettysburg College:

    

5.00%, 8/15/24

     100       109,112  

5.00%, 8/15/25

     100       108,883  

5.00%, 8/15/26

     100       108,883  

County of Cumberland Pennsylvania Municipal Authority, RB, AICUP Financing Program, Dickinson College Project, 5.00%, 11/01/39

     200       210,362  

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

    

6.38%, 1/01/19(b)

     900       954,090  

6.38%, 1/01/39

     100       104,402  

County of Delaware Pennsylvania Authority, RB, Villanova University:

    

5.00%, 8/01/40

     1,205       1,377,604  

5.00%, 8/01/45

     3,610       4,105,653  
     Par
(000)		     Value  
Education (continued)  

County of Delaware Pennsylvania Authority, Refunding RB:

    

Cabrini University, 5.00%, 7/01/47

   $ 2,480     $ 2,737,697  

Haverford College, 5.00%, 5/15/20(b)

     340       371,640  

Haverford College, 5.00%, 11/15/35

     75       80,924  

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

     100       108,361  

County of Northampton Pennsylvania General Purpose Authority, Refunding RB:

    

Moravian College, 5.00%, 10/01/36

     610       682,999  

St. Luke’s University Health Network Project,
5.00%, 8/15/46

     1,000       1,097,630  

Pennsylvania Higher Educational Facilities Authority, RB:

    

Shippensburg University Student Services, Student Housing, 5.00%, 10/01/44

     1,460       1,527,145  

Thomas Jefferson University, 5.00%, 3/01/20(b)

     1,000       1,086,090  

Pennsylvania Higher Educational Facilities Authority, Refunding RB:

    

Drexel University, Series A, 5.25%, 5/01/41

     3,930       4,363,558  

La Salle University, 5.00%, 5/01/37

     1,325       1,408,528  

La Salle University, 5.00%, 5/01/42

     1,855       1,951,998  

State System of Higher Education, Series AL, 5.00%, 6/15/35

     280       302,896  

Thomas Jefferson University, 5.00%, 9/01/45

     2,000       2,236,260  

University of the Sciences Philadelphia,
5.00%, 11/01/30

     940       1,070,641  

University of the Sciences Philadelphia,
5.00%, 11/01/31

     775       880,353  

University Properties, Inc. Student Housing Project, Series A, 5.00%, 7/01/35

     300       323,133  

Widener University, Series A, 5.25%, 7/15/33

     1,580       1,732,012  

Widener University, Series A, 5.50%, 7/15/38

     385       422,387  
 

 

 

2    2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

     Par
(000)		     Value  
Education (continued)  

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

   $ 2,710     $ 3,022,138  

Philadelphia Authority for Industrial Development, Refunding RB, 1st Series, 5.00%, 04/01/45

     2,170       2,456,527  

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

     830       970,743  

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

    

5.00%, 7/01/35

     435       474,537  

5.00%, 7/01/35

     485       522,578  

5.00%, 7/01/45

     300       318,645  

5.00%, 7/01/47

     820       875,858  

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

     610       642,068  
   

 

 

  
      38,746,335  
Health — 23.3%            

Berks County Industrial Development Authority, Refunding RB:

    

The Highlands At Wyomissing, Series A, 5.00%, 5/15/32

     450       505,877  

The Highlands At Wyomissing, Series A, 5.00%, 5/15/37

     345       382,219  

The Highlands At Wyomissing, Series A, 5.00%, 5/15/42

     205       225,211  

Tower Health Projects, 5.00%, 11/01/47

     1,500       1,673,670  

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

     3,000       3,363,030  

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

     2,000       2,573,660  

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

    

Series A, 5.00%, 11/01/40

     765       827,095  

Series A3, 5.50%, 11/01/31

     500       538,285  
     Par
(000)		     Value  
Health (continued)  

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

   $ 2,410     $ 2,939,911  

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

     2,290       2,588,181  

County of Cumberland Pennsylvania Municipal Authority, Refunding RB:

    

Asbury Pennsylvania Obligated Group, 5.25%, 1/01/41

     210       216,873  

Diakon Lutheran Social Ministries, 5.00%, 1/01/38

     2,600       2,814,266  

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

     240       258,019  

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

     415       447,163  

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

    

5.00%, 11/01/28

     575       657,087  

5.00%, 11/01/35

     425       472,643  

County of Lehigh Pennsylvania, RB, Lehigh Valley Health Network, Series A (AGM), 5.00%, 07/01/18(b)

     7,995       8,202,710  

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

     490       520,498  

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

     235       258,697  

County of Montgomery Pennsylvania IDA, Refunding RB:

    

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

     865       958,749  
 

 

 

SCHEDULE OF INVESTMENTS      3  

Schedule of Investments  (unaudited) (continued)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

     Par
(000)		     Value  
Health (continued)  

County of Montgomery Pennsylvania IDA, Refunding RB (continued):

    

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

   $ 555     $ 611,893  

Whitemarsh Continuing Care Retirement Community, 5.25%, 1/01/40

     220       221,027  

County of Union Pennsylvania Hospital Authority, Refunding RB, Evangelical Community Hospital Project, 7.00%, 08/01/41

     460       513,990  

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

     2,595       2,664,105  

Geisinger Authority Pennsylvania, RB, Series A,
5.25%, 06/01/19(b)

     1,000       1,064,190  

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

     4,050       4,656,892  

Lancaster IDA, Refunding RB, Garden Spot Village Project:

    

5.38%, 5/01/28

     520       569,462  

5.75%, 5/01/35

     865       947,521  

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

     1,000       1,078,100  

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

     940       1,043,024  

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

     1,310       1,381,015  

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

     2,055       2,268,967  

Southcentral Pennsylvania General Authority, Refunding RB, Wellspan Health Obligation Group, Series A(b):

    

6.00%, 12/01/18

     595       626,029  
     Par
(000)		     Value  
Health (continued)  

Southcentral Pennsylvania General Authority, Refunding RB, Wellspan Health Obligation Group, Series A(b) (continued):

    

6.00%, 12/01/18

   $ 655     $ 689,518  
   

 

 

  
      48,759,577  
Housing — 8.0%            

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

     1,360       1,569,698  

Pennsylvania HFA, RB:

    

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

     400       420,320  

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

     400       421,520  

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

     1,705       1,716,850  

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

     1,000       1,028,420  

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

     1,600       1,634,896  

Pennsylvania HFA, Refunding RB, S/F Housing Mortgage:

    

Series 115-A, AMT, 4.20%, 10/01/33(d)

     705       736,979  

Series 119, 3.50%, 10/01/36

     1,515       1,532,801  

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

     3,000       3,010,770  

Philadelphia IDA, RB, Series A:

    

3.50%, 12/01/36

     790       774,871  

4.00%, 12/01/46

     2,970       2,994,770  

4.00%, 12/01/51

     790       790,577  
   

 

 

  
      16,632,472  
State — 7.6%            

Commonwealth of Pennsylvania, GO, 1st Series(b):

    

5.00%, 6/01/22

     2,460       2,789,517  

5.00%, 4/01/23

     1,000       1,152,080  

Pennsylvania Economic Development Financing Authority, RB, Pennsylvania Bridge Finco LP, 5.00%, 06/30/42

     7,500       8,316,225  
 

 

 

4    2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

     Par
(000)		     Value  
State (continued)  

Pennsylvania Turnpike Commission, Refunding RB, Sub-Series A-1, 5.25%, 12/01/45

   $ 3,270     $ 3,704,092  
   

 

 

  
      15,961,914  
Transportation — 20.2%            

City of Philadelphia Pennsylvania, ARB, Series A:

    

5.00%, 6/15/40

     3,825       4,126,525  

AMT (AGM), 5.00%, 6/15/37

     5,900       5,917,464  

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

     1,500       1,733,655  

Delaware River Port Authority, RB:

    

5.00%, 1/01/29

     475       552,748  

5.00%, 1/01/37

     2,285       2,605,174  

Series D, 5.00%, 1/01/40

     750       803,843  

Series D (AGM), 5.00%, 1/01/40

     1,560       1,677,172  

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

     6,025       6,493,323  

Pennsylvania Turnpike Commission, RB:

    

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

     4,760       1,682,422  

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

     1,275       526,371  

Remarketing, Series C (NPFGC), 5.00%, 12/01/18(b)

     4,600       4,793,154  

Sub-Series A, 5.13%, 12/01/20(b)

     75       83,610  

Sub-Series A, 5.13%, 12/01/20(b)

     25       27,910  

Sub-Series B-1, 5.00%, 6/01/42

     2,345       2,645,441  

Pennsylvania Turnpike Commission, Refunding RB, Sub-Series B (AGM)(b):

    

5.25%, 6/01/19

     1,695       1,803,802  

5.25%, 6/01/19

     1,805       1,920,863  

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

    

5.00%, 6/01/21

     1,860       2,098,601  
     Par
(000)		     Value  
Transportation (continued)            

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

    

5.00%, 6/01/21

   $ 2,465     $ 2,781,210  
   

 

 

  
      42,273,288  
Utilities — 7.1%            

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

    

5.25%, 8/01/20(b)

     660       730,495  

5.25%, 8/01/40

     1,040       1,130,459  

City of Philadelphia Pennsylvania Gas Works, Refunding RB:

    

5.00%, 8/01/30

     800       926,608  

5.00%, 8/01/31

     600       693,144  

5.00%, 8/01/32

     800       921,176  

5.00%, 8/01/33

     400       458,788  

5.00%, 8/01/34

     700       799,750  

City of Philadelphia Pennsylvania Water & Wastewater, RB:

    

Series A, 5.25%, 1/01/19(b)

     800       838,184  

Series A, 5.25%, 10/01/52

     810       945,594  

Series C (AGM), 5.00%, 8/01/40

     3,350       3,626,609  

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

     1,410       1,623,150  

County of Bucks Pennsylvania Water & Sewer Authority, RB, Water System (AGM), 5.00%, 12/01/41

     30       33,174  

County of Delaware Pennsylvania Regional Water Quality Control Authority, RB, Sewer Improvements, 5.00%, 05/01/33

     420       478,712  

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

     1,605       1,688,235  
   

 

 

  
      14,894,078  
   

 

 

  

Total Municipal Bonds — 117.9%

       246,663,200  
   

 

 

  
 

 

 

SCHEDULE OF INVESTMENTS      5  

Schedule of Investments  (unaudited) (continued)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(Percentages shown are based on Net Assets)

 

     Par
(000)		     Value  

Municipal Bonds Transferred to Tender Option Bond Trusts(d)

 

Pennsylvania — 47.2%  
Education — 16.6%  

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

   $ 3,900     $ 4,492,966  

Pennsylvania Higher Educational Facilities Authority, RB:

    

State System of Higher Education, Series AR, 4.00%, 6/15/38

     11,335       11,822,013  

University of Pennsylvania Health System, Series A, 5.75%, 8/15/21(b)

     5,120       5,941,146  

University of Pennsylvania Health System, Series A, 4.00%, 8/15/39

     7,815       8,006,879  

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

     1,850       2,127,407  

University of Pittsburgh Pennsylvania, RB, The

Commonwealth System of Higher Education, RB, Capital Project, Series B, 5.00%, 09/15/28(b)

     2,202       2,315,511  
   

 

 

  
      34,705,922  
Health — 17.0%  

Geisinger Authority Pennsylvania, RB:

    

Series 1, 5.13%, 6/01/19(b)

     3,000       3,183,945  

Series 1, 5.25%, 6/01/39(b)

     3,128       3,325,161  

Series A-1, 5.13%, 6/01/41

     7,430       7,996,369  

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

     7,000       7,710,255  

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

     8,000       8,197,520  

 

     Par
(000)		     Value  
Health (continued)  

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

   $ 4,680     $ 5,186,892  
   

 

 

  
    35,600,142  
Housing — 2.7%  

Pennsylvania HFA, RB, S/F Housing Mortgage, Series 114-C, 3.70%, 10/01/42

     2,675       2,745,126  

Pennsylvania HFA, Refunding RB, S/F Mortgage, Series 115A, AMT, 4.20%, 10/01/33

     2,810       2,935,776  
   

 

 

  
    5,680,902  
State — 8.0%  

Commonwealth of Pennsylvania, GO, 1st Series, 5.00%, 03/15/19(b)

     6,028       6,338,852  

Pennsylvania Turnpike Commission, RB, Oil Franchise Tax Remarketing, Series C (NPFGC), 5.00%, 12/01/32(b)

     10,000       10,415,150  
   

 

 

  
    16,754,002  
Transportation — 1.0%  

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

     1,680       1,974,756  
   

 

 

  
Utilities — 1.9%  

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

     3,493       3,981,022  
   

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 47.2%

 

     98,696,746  
   

 

 

  

Total Long-Term Investments
(Cost — $328,415,735) — 165.1%

 

     345,359,946  

Other Assets Less Liabilities — 1.0%

 

     1,898,291  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (26.7)%

 

     (55,757,622 ) 

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (39.4)%

 

     (82,333,554 ) 
   

 

 

  

Net Assets Applicable to Common Shares — 100.0%

 

   $ 209,167,061  
   

 

 

  
 

 

 

6    2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

    

 

Notes to Schedule of Investments

 

  (a)  Variable rate security. Rate shown is the rate in effect as of period end.  
  (b)  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.  
  (c)  Zero-coupon bond.  
  (d)  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.  
  (e)  Security is collateralized by municipal bonds or U.S. Treasury obligations.  
  (f)  During the period ended October 31, 2017, 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
July 31, 2017		      Net Activity      Shares
Held at
October 31, 2017		      Value at
October 31, 2017		      Income      Net Realized
Gain (Loss)(a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, MuniCash, Institutional Class*

      489,482        (489,482 )       —        —      $ 49      $ (17 )     $ —  

 

  * Security no longer held by the Fund as of period end.  
  (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.

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

               

5-Year U.S. Treasury Note

      (25 )         December 2017        $2,930   $ 29,066  

10-Year U.S. Treasury Note

      (44 )         December 2017        5,497     85,210  

Long U.S. Treasury Bond

      (45 )         December 2017        6,861     130,864  

Ultra Long U.S. Treasury Bond

      (13 )         December 2017        2,142     46,487  
              

 

 

  

Total

                $ 291,627  
              

 

 

  

 

 

SCHEDULE OF INVESTMENTS      7  

Schedule of Investments  (unaudited) (continued)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

 

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
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
S/F    Single-Family
Syncora    Syncora Guarantee

 

 

8    2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued)

October 31, 2017

   

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 semi-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)

    $ —        $ 345,359,946        $             —        $ 345,359,946  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(b)

                  

Assets:

                 

Interest rate contracts

   $ 291,627        $ —        $ —        $ 291,627  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)  See above Schedule of Investments for values in each sector.  
  (b)  Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.  

 

 

SCHEDULE OF INVESTMENTS      9  

Schedule of Investments  (unaudited) (concluded)

October 31, 2017

   

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statements 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

   $ —        $ (55,651,315 )       $ —        $ (55,651,315 ) 

VRDP Shares at Liquidation Value

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

 

 

       

 

 

       

 

 

       

 

 

  

Total

   $             —        $ (138,251,315 )       $             —        $ (138,251,315 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

During the period ended October 31, 2017, there were no transfers between levels.

 

 

10    2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS

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 21, 2017

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 21, 2017

 

By:  

/s/ Neal J. Andrews

  Neal J. Andrews
 

Chief Financial Officer (principal financial officer) of

BlackRock MuniYield Pennsylvania Quality Fund

Date:   December 21, 2017