OREANDA-NEWS. Fitch Ratings affirms the 'AA' long-term ratings assigned to the following Variable Rate Municipal Term Preferred Shares (VMTP Shares) issued by three closed-end funds managed by Neuberger Berman Management LLC (the Advisor):

Neuberger Berman Intermediate Municipal Fund Inc. (NYSE MKT: NBH)
--$179,400,000 of Series A VMTP affirmed at 'AA'.

Neuberger Berman New York Intermediate Municipal Fund Inc. (NYSE MKT: NBO)
--$48,300,000 of Series A VMTP affirmed at 'AA'.

Neuberger Berman California Intermediate Municipal Fund Inc. (NYSE MKT: NBW)
--$59,000,000 of Series A VMTP affirmed at 'AA'.

KEY RATING DRIVERS
The 'AA' long-term ratings primarily reflect:
--Sufficient asset coverage provided to the VMTP shares as calculated per the fund's over-collateralization (OC) tests;
--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 Neuberger Berman as investment manager.

FUND PROFILES
All three funds are closed-end management investment companies regulated by the Investment Company Act of 1940. NBH's investment objective is to provide common stockholders a high level of current income exempt from federal income tax. NBO's investment objective is to provide common stockholders a high level of current income exempt from federal income tax and New York State and New York City personal income taxes. NBW's investment objective is to provide common stockholders a high level of current income exempt from federal income tax and California personal income tax.

All three funds may invest up to 20% in below investment grade and/or unrated securities. As of March 31, 2016, NBH had about $484 million in total assets, NBO had about $123 million in total assets and NBW had $146 million in total assets.

FUND LEVERAGE
As of March 31, 2016, NBH total leverage consisted of approximately $179 million of VMTP Shares and the effective leverage ratio was about 37%; NBO total leverage consisted of approximately $48 million of VMTP Shares and the effective leverage ratio was about 39% and NBW total leverage consisted of $59 million of VMTP Shares and the effective leverage ratio was about 40%.

ASSET COVERAGE
As of March 31, 2016, the funds' asset coverage ratios for the VMTP shares, as calculated in accordance with the 'AA' Fitch total and net over-collateralization tests (Fitch OC Tests) outlined in Fitch's criteria, were in excess of 100%. This is the minimum threshold required under the terms of the VMTP shares.

Also as of March 31, 2016, the asset coverage ratio for each fund, as calculated in accordance with the Investment Company Act of 1940 (Asset Coverage Test) at current market value, was in excess 225%. This is also the minimum asset coverage threshold required under the terms of the VMTP shares.

Finally, as of March 31, 2016, the effective leverage ratio (Effective Leverage Test) also calculated at current market value, was below 50%. This is the maximum leverage threshold allowed under the terms of the preferred shares (51% if the increase in the ratio is due exclusively to asset market value volatility).

In the event of breaches to any of the above thresholds, the funds are required to restore compliance per structural protections described below.

STRUCTURAL PROTECTIONS
Compliance with the Fitch OC, Asset Coverage and Effective Leverage thresholds is tested periodically. The fund manager is expected to cure any breach by altering the composition of the portfolio toward assets with lower discount factors (for Fitch OC Test breaches), or by reducing leverage in a sufficient amount (for all other breaches) within a pre-specified time period.

For Fitch OC, Asset Coverage and Effective Leverage Tests, the maximum market value exposures (i.e. valuation, cure and redemption) that preferred shareholders would be exposed to before cure or redemption is within Fitch's 60 business day criteria guideline.

THE ADVISOR
Neuberger Berman Investment Advisers LLC is an indirect subsidiary of Neuberger Berman Group LLC, which is a private, independent, employee-controlled investment manager founded in 1939. The firm has more than 1,900 employees and managed $243 billion in assets across equities, fixed income, and other alternative investments as of April 30, 2016.

RATING SENSITIVITIES
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 fund, as described above. A material adverse deviation from Fitch guidelines for any key rating driver could cause ratings to be lowered by Fitch.