N@N

NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings affirms the 'AAA' ratings assigned to Variable Rate MuniFund Term Preferred Shares (VMTP Shares) issued by three municipal closed-end funds managed by Nuveen Fund Advisors, Inc. (NFA) and subadvised by Nuveen Asset Management, LLC (NAM):

--Nuveen Performance Plus Municipal Fund, Inc. (NYSE: NPP)

--Nuveen Premium Income Municipal Fund, Inc. (NYSE: NPI)

--Nuveen Quality Municipal Fund, Inc. (NYSE: NQI)

A complete list of the funds and the associated VMTP Shares follows at the end of this press release.

KEY RATING DRIVERS

The 'AAA' ratings are based on asset coverage provided to the VMTP Shares by the funds' portfolios, structural protections afforded by mandatory deleveraging provisions in the event of asset coverage declines, the legal and regulatory parameters that govern the funds' operations and the capabilities of NFA as investment advisor and NAM as subadvisor.

ASSET COVERAGE

As of Jan. 31, 2012, the funds' pro forma asset coverage ratios for total outstanding preferred shares, as calculated in accordance with the Investment Company Act of 1940, were in excess of the minimum asset coverage of 225% required by the funds' governing documents (Minimum Asset Coverage Test).

Also as of the same date, the funds' pro forma effective leverage ratios were below the maximum leverage ratio of 45% allowed by the funds' governing documents (Effective Leverage Test).

In the event of asset coverage declines, the funds' governing documents will require the funds to reduce leverage in order to restore compliance with the OC test(s) breaching the required threshold(s).

STRESS TESTS

Fitch performed various stress tests on the funds to assess the strength of the structural protections available to the VMTP shares compared to the rating stresses outlined in Fitch's closed-end fund rating criteria. These tests included determining various 'worst case' scenarios where the funds' leverage and portfolio composition migrated to the outer limits of the funds' operating and investment guidelines.

Only under remote circumstances, such as increasing the funds' issuer concentration, while simultaneously migrating the portfolios to 80% 'BBB', 10+ years to maturity bonds and 20% high yield bonds, did the asset coverage available to the VMTP Shares fall below the 'AAA' threshold, and instead passed at an 'AA' rating level.

Given the highly unlikely nature of the stress scenarios, and the minimal rating impact, Fitch views the funds' permitted investments, municipal issuer diversification framework and mandatory deleveraging mechanisms as consistent with an 'AAA' rating.

THE FUNDS

The funds are diversified, closed-end management investment companies regulated by the Investment Company Act of 1940. The funds currently invest primarily in tax exempt, investment grade quality municipal bonds. The VMTP Shares are variable-rate preferred stock with three-year terms, and are privately placed.

NFA, a subsidiary of Nuveen Investments, is the funds' investment advisor, responsible for the funds' overall investment strategies and their implementation. NAM is a subsidiary of NFA and oversees the day-to-day operations of the funds. Nuveen Investments and its affiliates had approximately $207 billion of assets under management as of Oct. 31, 2011.

RATING SENSITIVITY

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

For additional information about Fitch rating guidelines applicable to debt and preferred stock issued by closed-end funds, please review the criteria referenced below, which can be found on Fitch's web site at '[ www.fitchratings.com ]'.

Fitch affirms the 'AAA' rating for the following:

Nuveen Performance Plus Municipal Fund, Inc. (NYSE: NPP)

--$421,700,000 of VMTP Shares, series 2014, with a liquidation preference of $100,000 per share, due March 1, 2014;

Nuveen Premium Income Municipal Fund, Inc. (NYSE: NPI)

--$402,400,000 of VMTP Shares, series 2014, with a liquidation preference of $100,000 per share, due March 1, 2014;

Nuveen Quality Municipal Fund, Inc. (NYSE: NQI)

--$240,400,000 of VMTP Shares, series 2014, with a liquidation preference of $100,000 per share, due March 1, 2014.

Additional information is available at '[ www.fitchratings.com ]'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

The sources of information used to assess this rating were the public domain and Nuveen Fund Advisors.

To receive Fitch's forthcoming research on closed-end funds please go to:

[ http://forms.fitchratings.com/forms/FAMCEFOptinform ]

Applicable Criteria and Related Research:

--'2012 Outlook: Closed-End Fund Leverage' (Dec. 19, 2011);

--'Closed-End Funds: Derivatives Under Review' (Nov. 16, 2011);

--'Rating Closed-End Fund Debt and Preferred Stock' (Aug. 16, 2011).

Applicable Criteria and Related Research:

Closed-End Funds: Derivatives Under Review (Increased Use and Limited Transparency Are Key Considerations)

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656591 ]

Rating Closed-End Fund Debt and Preferred Stock

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648840 ]

2012 Outlook: Closed-End Fund Leverage

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=660709 ]

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: [ HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS ]. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '[ WWW.FITCHRATINGS.COM ]'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.