Fitch Rates Aberdeen Asia-Pacific Income Fund, Inc. Senior Secured Notes 'AAA'

  Fitch Rates Aberdeen Asia-Pacific Income Fund, Inc. Senior Secured Notes
  'AAA'

Business Wire

NEW YORK -- June 13, 2013

Fitch Ratings assigns an 'AAA' rating to senior secured notes (the notes)
issued by Aberdeen Asia-Pacific Income Fund, Inc. (NYSE: FAX), a closed-end
fund (Fund):

--$100,000,000 Series A Notes due June 12, 2020;

--$100,000,000 Series B Notes due June 12, 2023.

The fund's investment manager is Aberdeen Asset Management Asia Limited, a
wholly-owned subsidiary of Aberdeen Asset Management PLC (LON: ADN).

The closing took place on June 12, 2013 with an aggregate notional issuance of
$200 million that was privately placed with institutional investors. The Fund
also closed a term loan agreement providing for $200 million in secured term
loans. The proceeds from the notes and the term loans were used to refinance
$400 million of the Fund's existing $600 million revolving credit facility.

KEY RATING DRIVERS

The rating assignments 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 Aberdeen Asset Management as investment advisor.

FUND PROFILE

As of May 31, 2013, the Fund's total assets were $2,536 million and total
leverage was $600 million. After giving effect to the issuance and sale of the
$200 million in rated notes (series A and series B), the borrowing of $200
million in term loans, and the application of the proceeds of such notes and
term loans to the refinancing of $400 million drawn on the Fund's credit
facility, all as of June 12, 2013, total leverage of the Fund was $600
million.

ASSET COVERAGE

The Fund's pro forma asset coverage ratios for the notes, as calculated in
accordance with the Fitch total and net overcollateralization tests (Fitch OC
tests) per the 'AAA' rating guidelines outlined in Fitch's closed-end fund
criteria, were in excess of 100%. This is the minimum asset coverage guideline
required by the Fund's governing documents and evaluated as such by Fitch.

The Fund's pro forma asset coverage ratios for the notes, as calculated in
accordance with the Investment Company Act of 1940 (1940 Act), were in excess
of 300%, which is the minimum asset coverage required by the 1940 Act at the
time of issuance and by the Fund's governing documents.

STRUCTURAL PROTECTIONS

Should the asset coverage tests decline below their minimum threshold amounts
(as tested on the last business day of each calendar month), under the terms
of the notes the Fund is required to deliver notice to the note purchasers
within five days. The Fund manager is then expected 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 both the Fitch OC Tests and the 1940 Act test breaches) within a
pre-specified time period (a maximum of 70 calendar days for the Fitch OC
Tests and for the 1940 Act tests).

Failure to cure an asset coverage breach is an event of default under the
terms of the notes. The Fund must then deliver another notice to the note
purchasers within five days. Following this a majority vote from note
purchasers may declare all the notes then outstanding to be immediately due
and payable.

Per the terms of the notes, the Fund may not declare or pay any dividend,
distribution or similar payment in respect of, or redeem any of, its shares if
immediately before or after giving effect to such action, there is or would be
a breach of the 1940 Act asset coverage tests or the Fitch OC tests except, in
the case of a breach of the Fitch OC tests, to the extent required in order
for the Fund to qualify as a regulated investment company or to otherwise
minimize or eliminate federal or state income taxes payable by the Fund. Fitch
views this as added incentives to cure and de-leverage in a timely manner,
regardless of acceleration by the notes purchasers.

THE FUND

The Fund's investment objective is to seek current income. The Fund may also
achieve incidental capital appreciation. The Fund seeks to achieve its
investment objective through investment in Australian and Asian debt
securities.

THE FUND'S MANAGER AND ADVISERS

The Fund's investment manager is Aberdeen Asset Management Asia Limited, the
Fund's investment adviser is Aberdeen Asset Management Limited and the Fund's
sub-adviser is Aberdeen Asset Managers Limited. Each is a wholly-owned
subsidiary of Aberdeen Asset Management PLC. Aberdeen Asset Management PLC is
a global investment management group, managing assets for both institutions
and private individuals from offices around the world. Aberdeen manages $328.7
billion of third party assets globally as of April 30, 2013. Aberdeen is
publicly traded on the London Stock Exchange (FTSE 100 since 1991).

RATINGS SENSITIVITY

The rating is based on the terms of the notes stipulating mandatory collateral
maintenance and de-leveraging provisions in the event of asset coverage
declines. Should the Fund fail to cure an asset coverage breach, or the note
purchasers not declare the notes due and payable upon an event of default due
to 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 credit quality or
market risk profile of the Fund. A material adverse deviation from Fitch
guidelines for any key rating driver could cause the ratings to be lowered by
Fitch.

For additional information about Fitch closed-end fund ratings guidelines,
please review the criteria referenced below, which can be found on Fitch's
website.

To receive complimentary closed-end fund research, opt-in at the following
link:

http://pages.fitchemail.fitchratings.com/FAMCEFBlankOptin/

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'Rating Closed-End Fund Debt and Preferred Stock' (Aug. 15, 2012);

--'Taxable Closed-End Funds Dashboard' (Jun. 4, 2013);

--'Taxable Closed-End Fund Leverage Ratios Evolve with Capital Structures'
(Apr. 23, 2013).

Applicable Criteria and Related Research:

Taxable Closed-End Fund Leverage RatiosEvolve with Capital Structures
(Additional Leverage Capacity Possible On Future Term Out)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706642

Taxable Closed-End Funds Dashboard

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709358

Rating Closed-End Fund Debt and Preferred Stock

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686101

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=793577

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Contact:

Fitch Ratings
Primary Analyst
Yuriy Layvand, CFA
Director
+1-212-908-9191
Fitch Ratings, Inc.
1 State Street Plaza
New York, New York, 10004
or
Secondary Analyst
Benjamin Han
+1-212-908-9177
or
Committee Chairperson
Manuel Arrive
+33 144 299 177
or
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Email: brian.bertsch@fitchratings.com