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Western Asset Municipal High Income Fund Inc. as of June 30, 2010

^{Published on 2010-07-22 13:25:48 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Western Asset Municipal High Income Fund Inc. (NYSE: MHF) announces its portfolio composition as of June 30, 2010.

Investment Objective: The Fund seeks high current income exempt from Federal income taxes.

The investment manager has assigned its own ratings to securities not rated by S&P, Moody's or Fitch. Of the credit quality allocation totals above, Western Asset has rated 6.2% of the portfolio as equivalent to AAA, 5.4% as BBB, 11.8% as BB and 5.7% as B.

(Daily NAV is available on market quotation systems using the symbol XMHFX.)

* Portfolio holdings and weightings are historical and are presented here for informational purposes only. They are subject to change at any time.

Western Asset Municipal High Income Fund Inc., a diversified closed-end investment management company, is advised by Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc., and is sub-advised by Western Asset Management Company, an affiliate of the advisor.

An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Fixed income securities are subject to credit risk, inflation risk, call risk, and interest rate risk. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. Certain investors may be subject to the alternative minimum tax (AMT). State and local taxes may apply. The Fund may invest in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. The credit quality ratings shown may change over time.

For more information, please call Fund Investor Services at 888-777-0102 or consult the Funda™s web site at [ www.leggmason.com/cef ].

¹ Credit quality is a measure of a bond issuer's ability to repay interest and a principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by the following Nationally Recognized Statistical Rating Organizations ("NRSRO"): Standard and Poor's ("S&P"), Moody's Investors Service ("Moody's"), Fitch Ratings, Ltd. In the case where a security is not rated by an NRSRO the rating is determined by Western Asset Management ("WAM"), the fund's investment manager (and not an NRSRO). For this purpose, if two or more of the other NRSROs have assigned a rating to a security, the highest rating is used. If a security is not rated by a NRSRO, WAM will analyze comparable securities with similar characteristics (size, capital structure, industry sector, risks, etc.) and assign its own rating using denominations similar to those of S&P. Unrated securities assigned a rating by WAM are specified separately in the credit quality breakdown being shown. A negative allocation may be apparent, which is primarily due to the Fund's unsettled trade activity. Currency forwards and futures are not rated by a NRSRO or WAM and are listed as "Non Rated". The credit quality of the investments in the Fund's portfolio does not apply to the stability or safety of the Fund. These ratings are updated by WAM monthly and may change over time. Please note, WAM is not a NRSRO nor has the Fund itself been rated by a NRSRO.

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