Moody's Affirms P-1 Short-Term Rating for Nuveen New York AMT-Free Quality Municipal Income Fund's Series 3 Variable Rate Demand Preferred Shares

Strategic Insights -

Moody's Investors Service has affirmed the P-1 short-term rating of Series 3 Variable Rate Demand Preferred (VRDP) Shares issued by Nuveen New York AMT-Free Quality Municipal Income Fund (Ticker: NRK), following a change in the Liquidity Provider for the fund's Series 3 VRDP Shares to Sumitomo Mitsui Banking Corporation. The affirmation is based on the fact that the new Liquidity Provider has the same short-term creditworthiness as the previous one, Citibank, N.A. The Series 3 VRDP Shares will have the benefit of an unconditional demand feature pursuant to a purchase obligation provided by Sumitomo Mitsui Banking Corporation, effective from February 12, 2021.

Key Takeaways:

  • Moody's has affirmed the P-1 short-term rating of Series 3 VRDP Shares issued by Nuveen New York AMT-Free Quality Municipal Income Fund, following a change in the Liquidity Provider.
  • The new Liquidity Provider, Sumitomo Mitsui Banking Corporation, has the same short-term creditworthiness as the previous Liquidity Provider, Citibank, N.A.
  • The Series 3 VRDP Shares will have the benefit of an unconditional demand feature pursuant to a purchase obligation provided by Sumitomo Mitsui Banking Corporation.
  • The appointment of a new Liquidity Provider has no impact on the short-term rating of the affected series of VRDP.
  • The ratings are based on the Liquidity Provider's short-term rating and creditworthiness, as well as the terms of the liquidity commitment.
  • The Series 3 VRDP Shares have the benefit of an unconditional demand feature pursuant to a purchase obligation provided by Citibank until February 12, 2021.

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Statistics:

  • $161,700,000 - The face value of the Series 3 Variable Rate Demand Preferred Shares issued by Nuveen New York AMT-Free Quality Municipal Income Fund.
  • 1,617 shares - The number of Series 3 VRDP Shares issued by Nuveen New York AMT-Free Quality Municipal Income Fund.
  • Liquidation preference of $100,000 per share - The liquidation preference for each of the 1,617 Series 3 VRDP Shares.
  • P-1 - The affirmed short-term rating for the Series 3 Variable Rate Demand Preferred Shares.

Sources:

  • Moody's Investors Service - The issuer of the news release announcing the affirmation of the P-1 short-term rating.
  • "Closed-End Funds Methodology" published in December 2020 - The principal methodology used in this rating.
  • www.moodys.com - The website where the rating methodology and regulatory disclosures can be found.