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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Gabelli Dividend & Income Trust
Global Credit Research - 22 Jan 2021
New York, January 22, 2021 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Gabelli Dividend & Income Trust and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 13 January 2021 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology (ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Gabelli Dividend & Income Trust's (NYSE: GDV) Aa3 rating reflects the fund's very high risk-adjusted asset coverage ratio partly offset by its relatively weak capacity to service leverage costs from recurring investment income. At 30 November 2020, the fund's risk adjusted asset coverage stood at the Aaa rating level and its five-year average fixed charge coverage was two times net investment income. The high liquidity profile of the fund's underlying equity portfolio is somewhat offset by the lower credit quality.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Closed-End Funds Methodology published in December 2020. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Dean Ungar, CFA VP - Senior Credit Officer Financial Institutions Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Marc R. Pinto, CFA MD - Financial Institutions Financial Institutions Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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