Boulder Total Return : Boulder Total Return Fund, Inc. Announces Rating Upgrades to 'AAA' on Its Taxable Auction Market Preferred Stock
August 01, 2006 at 01:38 pm EDT
By
The Boulder Total Return Fund, Inc. (NYSE:BTF) is
pleased to announce that the Fund's taxable auction market preferred
stock ("AMPs") has received an upgrade in its rating from Moody's
Investors Services from 'Aa1' to 'Aaa' and in its rating from Standard
& Poor's from 'AA' to 'AAA.' The Fund is currently leveraged with
$77.5 million of AMPs. Triple-A ratings assigned to the preferred
shares are based on an assessment that the market value of the
underlying assets of the portfolio is sufficient to provide the
highest asset protection to investors in the preferred stock. These
assets serve to collateralize the preferred shares, as well as the
related dividend obligations. To meet the triple-A rating guidelines
by both agencies, the Fund adheres to various eligibility and
diversification limitations that supplement regulatory requirements of
the Investment Company Act of 1940, as amended (the "1940 Act"),
mandating an asset coverage ratio of 200% to cover the Fund's
liabilities. Based on assets as of July 30, 2006, the Fund maintained
a 1940 Act asset coverage ratio of 430%.