Fitch Affirms Preferred Share Ratings of 2 Pioneer Municipal Closed End Funds at 'AAA'

NEW YORK--()--Fitch Ratings has affirmed the 'AAA' ratings assigned to the following auction market preferred shares (AMPS) issued by Pioneer Municipal High Income Trust (NYSE: MHI) and Pioneer Municipal High Income Advantage Trust (NYSE: MAV), both of which are leveraged municipal closed-end funds advised by Pioneer Investments Management (Pioneer):

Pioneer Municipal High Income Trust (MHI):

--$50,000,000 of auction market preferred shares, series A, with a liquidation preference of $25,000 per share;

--$51,000,000 of auction market preferred shares, series B, with a liquidation preference of $25,000 per share.

Pioneer Municipal High Income Advantage Trust (MAV):

--$75,000,000 of auction market preferred shares, series A, with a liquidation preference of $25,000 per share;

--$75,000,000 of auction market preferred shares, series B, with a liquidation preference of $25,000 per share.

KEY RATING DRIVERS

The 'AAA' rating affirmations reflects:

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

--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.

Fitch's ratings on AMPS speak only to timely repayment of interest and principal in accordance with the governing documents and not to potential liquidity in the secondary market.

LEVERAGE

As of Jan. 18, 2013, MHI's total assets were approximately $434 million and total leverage was approximately $101 million in AMPS or 23% of total assets. As of the same date, MAV's total assets were approximately $472 million and total leverage was approximately $150 million, or 32% of total assets.

ASSET COVERAGE

At the time of the rating 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%. 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 within a 40 business day period.

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

PIONEER MUNICIPAL HIGH INCOME TRUST (MHI):

MHI is a diversified closed-end management investment company, registered under the Investment Company Act of 1940, 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 Investment Company Act of 1940, 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 Jan. 31, 2013, Pioneer Global Asset Management S.p.A. had approximately $211.9 billion of assets under management.

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'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

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' (Aug. 15, 2012);

--'2013 Outlook: Closed-End Funds' (Dec. 14, 2012).

Applicable Criteria and Related Research

Rating Closed-End Fund Debt and Preferred Stock

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686101

2013 Outlook: Closed-End Funds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696831

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Contacts

Fitch Ratings
Primary Analyst
Gwen Fink-Stone, J.D., +1-212-908-9128
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Yuriy Layvand, CFA, +1-212-908-9191
Director
or
Committee Chairperson
Ian Rasmussen, +1-212-908-0232
Senior Director
or
Media Relations
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Gwen Fink-Stone, J.D., +1-212-908-9128
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Yuriy Layvand, CFA, +1-212-908-9191
Director
or
Committee Chairperson
Ian Rasmussen, +1-212-908-0232
Senior Director
or
Media Relations
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com