OREANDA-NEWS. Fitch Ratings has affirmed the ratings assigned to the following Variable Rate MuniTerm Preferred Shares (VMTP Shares) issued by Dreyfus Municipal Bond Infrastructure Fund, Inc. (NYSE: DMB), a closed-end fund managed by The Dreyfus Corporation (Dreyfus) and sub-advised by Standish Mellon Asset Management Company LLC (Standish):

--$75,000,000 of Series W-7 VMTP Shares with a term redemption date of July 27, 2018 at 'AAA'.

KEY RATING DRIVERS

The ratings primarily reflect:

--Sufficient asset coverage provided to the notes as calculated per Fitch's asset coverage tests and published rating criteria;

--The structural protections afforded by mandatory collateral maintenance and de-leveraging provisions in the event of asset coverage declines;

--The legal and regulatory parameters that govern the Fund's operations;

--The capabilities of Dreyfus and Standish as fund advisers.

FUND PROFILE

DMB is a non-diversified, closed-end management company. The fund's investment objective is to provide as high a level of current income exempt from regular federal income tax as is consistent with the preservation of capital. The fund seeks to achieve its investment objective through investment of at least 80% of assets in municipal bonds issued to finance infrastructure sectors and projects in the United States. Infrastructure sectors and projects in which the Fund may invest include transportation (toll roads), energy & utilities (wastewater treatment), social infrastructure (schools), and water & environmental (drinking water).

LEVERAGE

As of July 31, 2016, DMB's total assets were approximately $383 million supporting $75 million of VMTP Shares and $37 million of floating-rate securities of tender option bonds. The fund's leverage ratio is approximately 29%.

ASSET COVERAGE

As of July 27, 2016, DMB's asset coverage ratio, 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 fund's governing documents require that asset coverage for the VMTP Shares, as calculated in accordance with the Fitch OC tests, be maintained in excess of 100%.

The tests calculate standardized asset coverage by applying haircuts to portfolio holdings based on perceived riskiness and diversification of the assets and measuring its ability to cover both on - and off-balance-sheet liabilities, if any, at the assigned 'AAA' stress level.

As of the same date, the fund's asset coverage ratio for the VMTP Shares, as calculated in accordance with the Investment Company Act of 1940, was in excess of the minimum asset coverage threshold of 225% required by the fund's governing documents (Preferred Asset Coverage Ratio).

Additionally, the fund has also covenanted to maintain the Effective Leverage Ratio for both VMTP Shares and floating-rate certificates of tender option bonds below 50% of total assets. The fund's Effective Leverage Ratio is currently below 50%.

STRUCTURAL PROTECTIONS

Compliance with the Fitch OC Test, Preferred Asset Coverage

Ration and Effective Leverage Ratio thresholds is evaluated periodically. Should the asset coverage tests decline below their minimum threshold amounts, under the terms of the VMTP Shares the fund is required to cure the breach by altering the composition of the portfolio toward assets with lower discount factors (for Fitch OC Tests breaches), or by reducing leverage in a sufficient amount (for all test breaches) within a pre-specified time period. In the event of a breach of any of these thresholds, the allotted time to restore compliance is consistent with Fitch's 60 business day criteria guideline.

THE ADVISERS

The fund is managed by Dreyfus and is sub-advised by Standish, a BNY Mellon Company. Standish is responsible for the implementation and execution of the investment strategy on a day-to-day basis. Standish is an SEC registered and regulated investment advisor with $157 billion in assets under management, $28 billion of which is municipal bond assets as of March 31, 2016.

RATING SENSITIVITIES

The rating is based on the terms of the VMTP stipulating mandatory collateral maintenance and de-leveraging provisions in the event of asset coverage declines. Should the funds fail to cure an asset coverage breach this may lengthen exposure to market value risk and cause the ratings to be lowered by Fitch.

The ratings may also be sensitive to material changes in the leverage composition, portfolio credit quality or market risk profile of the funds. A material adverse deviation from Fitch guidelines for any key rating driver could cause the ratings to be lowered by Fitch.