OREANDA-NEWS. Fitch Ratings affirms the 'AAA' long-term ratings of Variable Rate Muni Term Preferred Shares (VMTP shares) issued by Invesco Value Municipal Income Trust (NYSE:IIM), a municipal closed-end fund (CEF) managed by Invesco Advisers, Inc. (NYSE:IVZ) as follows:

--Invesco Value Municipal Income Trust
(NYSE: IIM) \$193,100,000 of VMTP Shares, affirmed at 'AAA'.

KEY RATING DRIVERS

The rating affirmation primarily reflects:
--Sufficient asset coverage provided to the VMTP shares as calculated per the fund's overcollateralization (OC) tests;
--The structural protections afforded by mandatory de-leveraging provisions in the event of asset coverage declines;
--The legal and regulatory parameters that govern the fund's operations;
--The capabilities of Invesco Advisers, Inc. as investment advisor.

FUND PROFILE
IIM is a closed-end management investment company regulated by the Investment Company Act of 1940. The fund currently invests primarily in investment-grade quality municipal bonds.

FUND LEVERAGE
As of Feb. 2, 2015, IIM had approximately \$1.2 billion in assets. Total leverage consists of \$193.1 million of the VMTP Shares and \$216.6 million of tender option bond (TOB) obligations. Total leverage increased marginally to 35% from 32% following the fund's \$50 million VMTP offering on Feb. 2, 2015.

ASSET COVERAGE
As of Feb. 2, 2015, the fund's asset coverage ratios, as calculated in accordance with the Fitch total and net overcollateralization (OC) tests per the 'AAA' rating guidelines outlined in Fitch's criteria, were in excess of 100%, which is the minimum threshold required under the VMTP Shares' transactional documents.

The Fitch OC tests calculate standardized asset coverage by applying haircuts to portfolio holdings based on riskiness and diversification of the assets and measuring their ability to cover both on- and off- balance-sheet liabilities at the stress level that corresponds to the assigned rating.

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 Shares Asset Coverage Test) and the fund's pro forma effective leverage ratios were below the 45% maximum leverage ratio allowed by the fund's governing documents (Effective Leverage Test).

STRUCTURAL PROTECTIONS
Compliance with the Fitch OC, Preferred Shares Asset Coverage and Effective Leverage Tests is tested periodically. In the event of a breach, the fund's governing documents will require the fund to reduce leverage in order to restore compliance with the test(s) breaching the required threshold(s).

The total market value exposure periods (i.e. the pre-specified time period allotted for valuation, cure and redemption in the event of a breach) are within the 60-business-day Fitch criteria guidelines.

THE ADVISOR
Invesco Advisers, Inc., an indirect, wholly owned subsidiary of
Invesco, Ltd., is the fund's adviser, responsible for the fund's overall investment strategy and its implementation. Invesco Ltd. had approximately \$792.4 billion of assets under management as of Dec. 31, 2014.

RATING SENSITIVITIES
The ratings assigned to the preferred shares may be sensitive to material changes in the leverage composition, portfolio credit quality or market risk of the fund, as described above. A material adverse deviation from Fitch guidelines for any key rating driver could cause ratings to be lowered by Fitch. The fund has the ability to assume economic leverage through derivative transactions which may not be captured by the fund's Preferred Shares Asset Coverage test or Effective Leverage Ratio.

The fund currently does not engage in derivative activities for speculative purposes and does not envision engaging in such activity in the future. Material derivative exposure in the future could have potential negative rating implications if it adversely affects asset coverage available to rated preferred shares.