Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 181

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 181
---
 Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be sub- categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of MIY Municipal Bonds with respect to the foregoing requirements, the Investment
Advisor takes into account the nature of any letters of credit or similar credit enhancement to which particular MIY Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement. If
unrated, such securities will possess creditworthiness comparable, in the opinion of the Investment Advisor, to other obligations in which MIY may invest.

MIY also may invest up to 25% of its total assets in MIY Municipal Bonds that are rated below Baa by Moody’s or below
BBB by S&P or Fitch or, if unrated, are considered by the Investment Advisor to possess similar credit characteristics. Such securities, sometimes referred to as “high yield” or “junk” bonds, are predominantly speculative
with respect to the capacity to pay interest and repay principal in accordance with the terms of the security and generally involve a greater volatility of price than securities in higher rating categories. MIY does not intend to purchase MIY
Municipal Bonds that are in default or which the Investment Advisor believes will soon be in default. Below investment grade securities and comparable unrated securities involve substantial risk of loss, are considered speculative with respect to
the issuer’s ability to pay interest and any required redemption or principal payments and are susceptible to default or decline in market value due to adverse economic and business developments.

All percentage and ratings limitations on securities in which MIY may invest apply at the time of making an investment and
shall not be considered violated if an investment rating is subsequently downgraded to a rating that would have precluded MIY’s initial investment in such security. In the event that MIY disposes of a portfolio security subsequent to its being
downgraded, MIY may experience a greater risk of loss than if such security had been sold prior to such downgrade.

MIY
intends to invest primarily in long-term MIY Municipal Bonds with maturities of more than ten years. However, MIY also may invest in intermediate term MIY Municipal Bonds with maturities of between three years and ten years. MIY also may invest from
time to time in short-term MIY Municipal Bonds with maturities of less than three years. The average maturity of MIY’s portfolio securities will vary based upon the Investment Advisor’s assessment