N-CSR 1 fra.htm FRA fra.htm - Produced by Pellegrini and Associates, Inc. | 134 Spring Street New York NY 10012 | (212) 925-5151

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21413

Name of Fund: BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Floating Rate Income Strategies Fund, Inc., 40 East 52nd Street, New York, NY 10022.

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2009

Date of reporting period: 08/31/2009

Item 1 – Report to Stockholders


EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Annual Report

AUGUST 31, 2009

BlackRock Defined Opportunity Credit Trust (BHL)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

BlackRock Limited Duration Income Trust (BLW)

BlackRock Senior Floating Rate Fund, Inc.

BlackRock Senior Floating Rate Fund II, Inc.

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

Table of Contents   
  Page 
Dear Shareholder  3 
Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  10 
Derivative Financial Instruments  11 
Disclosure of Expenses  11 
Fund Financial Statements   
       Schedules of Investments  12 
       Statements of Assets and Liabilities  38 
       Statements of Operations  40 
       Statements of Changes in Net Assets  42 
       Statements of Cash Flows  45 
Fund Financial Highlights  46 
Fund Notes to Financial Statements  52 
Fund Report of Independent Registered Public Accounting Firm  63 
Important Tax Information  64 
Master Senior Floating Rate LLC Portfolio Summary  64 
Master Senior Floating Rate LLC Financial Statements:   
       Schedule of Investments  65 
       Statement of Assets and Liabilities  71 
       Statement of Operations  72 
       Statements of Changes in Net Assets  72 
       Statement of Cash Flows  73 
Master Senior Floating Rate LLC Financial Highlights  74 
Master Senior Floating Rate LLC Notes to Financial Statements  75 
Master Senior Floating Rate LLC Report of Independent Registered Public Accounting Firm  80 
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements  81 
Automatic Dividend Reinvestment Plan  85 
Officers and Directors  86 
Additional Information  89 

2 ANNUAL REPORT AUGUST 31, 2009

Dear Shareholder

The past 12 months reveal two distinct economic and market backdrops — one of extreme investor pessimism and decided weakness, and another of

increased optimism amid growing signs of recovery. The start of the period was characterized by the former. September through December 2008 saw the

surge of the economic storm that sparked the worst recession in decades. The months featured, among others, the infamous collapse of Lehman Brothers,

uniformly poor economic data and plummeting investor confidence that resulted in massive government intervention (on a global scale) in the financial sys-

tem and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected

economic data and upside surprises in corporate earnings.

In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March before embarking on a rally that resulted

in strong year-to-date returns for all major indexes. June saw a brief correction, though it appeared to be induced more by profit-taking and portfolio rebal-

ancing than by a change in the economic outlook. The experience in international markets was similar to that in the United States. Notably, emerging mar-

kets staged a strong comeback in 2009 as these areas of the globe have generally seen a stronger acceleration in economic activity.

In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, but more recently, ongoing concerns

about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields higher. At the same time, relatively attractive yields and dis-

tressed valuations among non-Treasury assets, coupled with a more favorable macro environment, drew in sidelined investors and triggered a sharp recovery

in these sectors. This was particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. The

municipal bond market enjoyed strong returns in 2009 as well, buoyed by a combination of attractive valuations, robust retail investor demand and a slow-

down in forced selling. Moreover, the Build America Bond program has alleviated supply pressures, creating a more favorable technical environment. In par-

ticular, August marked the municipal market’s best monthly performance in more than 20 years, as the asset class has regained year-to-date all that was

lost during 2008.

Overall, results for the major benchmark indexes were mixed. Higher-risk assets (i.e., equities and high yield bonds) and Treasuries reflected a bifurcated

market, while less-risky fixed income investments posted stable, modest returns.

Total Returns as of August 31, 2009  6-month  12-month 
US equities (S&P 500 Index)  40.52%  (18.25)% 
Small cap US equities (Russell 2000 Index)  48.25  (21.29) 
International equities (MSCI Europe, Australasia, Far East Index)  53.47  (14.95) 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*)  (1.61)  6.77 
Taxable fixed income (Barclays Capital US Aggregate Bond Index)  5.95  7.94 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)  5.61  5.67 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  36.31  7.00 
* Formerly a Merrill Lynch Index.     
       Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.   
The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market tur- 
bulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. We invite you to visit www.blackrock.com/funds for our 
most current views on the economy and financial markets. As always, we thank you for entrusting BlackRock with your investments, and we look forward to 
continuing to serve you in the months and years ahead.     


Announcement to Shareholders

On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had

accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of

BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of

BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is

scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of August 31, 2009 BlackRock Defined Opportunity Credit Trust

Investment Objective

BlackRock Defined Opportunity Credit Trust (BHL) (the “Fund”) seeks high current income, with a secondary objective of long-term capital appreciation.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (2.65)% based on market price and (2.16)% based on net asset value (“NAV”). For the
same period, the closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a
NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between
performance based on price and performance based on NAV. The Fund maintained relatively defensive sector positioning and relatively low levels of lever-
age (less than 20%). On balance, that positioning benefited the Fund relative to its more highly levered Lipper competitors, although returns would have
been higher over the trailing six-month period had the Fund maintained a higher leverage balance. The Fund’s conservative positioning was a detractor dur-
ing the last six months given the market’s strong returns. During the period, the Fund moved from a larger cash and short-term investment balance, which
benefited performance in 2008, to a balance of less than 3%, which has benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information               
  Symbol on New York Stock Exchange (“NYSE”)          BHL 
  Initial Offering Date          January 31, 2008 
  Yield on Closing Market Price as of August 31, 2009 ($11.03)1        6.53% 
  Current Monthly Distribution per Share2            $0.06 
  Current Annualized Distribution per Share2          $0.72 
  Leverage as of August 31, 20093            19% 
     1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
         Past performance does not guarantee future results.           
     2 The distribution rate is not constant and is subject to change.         
     3 Represents loans outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to 
         borrowings), minus the sum of liabilities (other than borrowing representing financial leverage). For a discussion of leveraging techniques utilized by 
         the Fund, please see The Benefits and Risks of Leveraging on page 10.         
  The table below summarizes the changes in the Fund’s market price and NAV per share:       
                         8/31/09  8/31/08  Change  High  Low 
  Market Price                         $11.03  $12.66  (12.88)%  $13.29  $6.53 
  Net Asset Value                         $12.53  $14.31  (12.44)%  $14.35  $8.36 
  The following unaudited charts show the portfolio composition of the Fund’s long-term investments:     
       Portfolio Composition             
    8/31/09  8/31/08         
  Floating Rate Loan Interests  94%  99%         
  Corporate Bonds  6  1         

4 ANNUAL REPORT AUGUST 31, 2009

Fund Summary as of August 31, 2009 BlackRock Diversified Income Strategies Fund, Inc.

Investment Objective

BlackRock Diversified Income Strategies Fund, Inc. (DVF) (the “Fund”) seeks to provide investors with a high current income by investing primarily in a
diversified portfolio of floating rate debt securities and instruments, including floating or variable rate loans, bonds, preferred securities (including convert-
ible preferred securities), notes or other debt securities or instruments that pay a floating rate of interest.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (16.27)% based on market price and (23.82)% based on NAV. For the same period, the
closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a NAV basis. All returns
reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period-end, which accounts for the difference between perform-
ance based on price and performance based on NAV. Unlike other funds in the Lipper category, the Fund invests a significant amount of its portfolio in
fixed-rate, high yield corporate bonds, and a portion in high yield floating rate loan interests (“FRNs”). During the 12 months, fixed-rate, high yield bonds
outperformed leveraged loans and this contributed to performance. Conversely, the Fund’s credit quality has generally been skewed towards the lower credit
quality tiers, which had a negative impact on performance during the market’s fall in 2008. Though it has benefited the Fund in 2009 as markets rallied, on
balance, the positioning detracted relative to the Lipper category. The Fund’s allocation to high yield FRNs also hampered results as these issues underper-
formed. During the period, the Fund moved from a larger cash and short-term investment balance, which benefited performance in 2008, to a balance of
less than 3%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information                 
  Symbol on NYSE              DVF 
  Initial Offering Date            January 31, 2005 
  Yield on Closing Market Price as of August 31, 2009 ($8.80)1          11.93% 
  Current Monthly Distribution per Share2              $0.0875 
  Current Annualized Distribution per Share2              $1.0500 
  Leverage as of August 31, 20093              14% 
     1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
         Past performance does not guarantee future results.             
  2 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Share was decreased to $0.0785. The Yield on 
  Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. 
         The new distribution rate is not constant and is subject to further change in the future.         
  3 Represents loans outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to 
         any borrowings), minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized 
         by the Fund, please see The Benefits and Risks of Leveraging on page 10.         
  The table below summarizes the changes in the Fund’s market price and NAV per share:       
        8/31/09  8/31/08  Change  High  Low 
  Market Price      $8.80  $12.77  (31.09)%  $13.04  $4.70 
  Net Asset Value      $8.74  $13.94  (37.30)%  $13.94  $5.35 
  The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations 
  of the Fund’s corporate bond investments:               
       Portfolio Composition                   Credit Quality Allocations4     
  8/31/09  8/31/08        8/31/09  8/31/08 
  Corporate Bonds  49%  50%         AAA/Aaa      —  3% 
  Floating Rate Loan Interests  49  47         BBB/Baa      —  1 
  Common Stocks  2  3         BB/Ba      17%  7 
               B/B      37  61 
               CCC/Caa      34  20 
               CC/Ca      4  2 
               D      3  — 
               Not Rated    5  6 
        4 Using the higher of Standard & Poor’s (“S&P”) or Moody’s Investors 
                     Service (“Moody’s”) ratings.     

ANNUAL REPORT AUGUST 31, 2009 5

Fund Summary as of August 31, 2009 BlackRock Floating Rate Income Strategies Fund, Inc.

Investment Objective

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (the “Fund”) seeks high current income and such preservation of capital as is consistent with
investment in a diversified, leveraged portfolio consisting primarily of floating rate debt securities and instruments.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (3.88)% based on market price and (8.88)% based on NAV. For the same period, the
closed-end Lipper Loan Participation Funds category posted an average return of (7.95)% on a market price basis and (13.39)% on a NAV basis. The per-
formance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group includes unleveraged continuously offered closed-
end funds. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between
performance based on price and performance based on NAV. The Fund maintained relatively defensive sector positioning and low levels of leverage (less
than 20%). On balance, that positioning benefited the Fund versus its more highly levered Lipper competitors. The Fund also had about 20% of its portfolio
in high yield corporate bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund’s conservative position-
ing was a detractor given the market’s strong returns. During the period, the Fund moved from a larger cash and short-term investment balance, which bene-
fited performance in 2008, to a balance of less than 3%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information                 
  Symbol on NYSE              FRA 
  Initial Offering Date            October 31, 2003 
  Yield on Closing Market Price as of August 31, 2009 ($12.26)1          8.79% 
  Current Monthly Distribution per Share2            $0.089835 
  Current Annualized Distribution per Share2            $1.078020 
  Leverage as of August 31, 20093              14% 
     1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
         Past performance does not guarantee future results.             
     2 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Share was decreased to $0.081500. The Yield 
         on Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. 
         The new distribution rate is not constant and is subject to further change in the future.         
     3 Represents loans outstanding as a percentage of managed assets, which is the total assets of the Fund, including any assets attributable to 
         any borrowing that may be outstanding, minus the sum of accrued liabilities (other than debt representing financial leverage). For a discussion 
         of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.     
  The table below summarizes the changes in the Fund’s market price and NAV per share:       
        8/31/09  8/31/08  Change  High  Low 
  Market Price      $12.26  $14.49  (15.39)%  $14.68  $7.79 
  Net Asset Value      $12.93  $16.12  (19.79)%  $16.12  $8.96 
  The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of 
  the Fund’s corporate bond investments:               
       Portfolio Composition                   Credit Quality Allocations4     
  8/31/09  8/31/08        8/31/09  8/31/08 
  Floating Rate Loan Interests  75%  73%         AA/Aa      —  5% 
  Corporate Bonds  24  26         BBB/Baa             12%  11 
  Common Stocks  1  1         BB/Ba      15  11 
               B/B      46  59 
               CCC/Caa      21  8 
               D/D      4  — 
               Not Rated    2  6 
                 4 Using the higher of S&P’s or Moody’s ratings.   

6 ANNUAL REPORT AUGUST 31, 2009

Fund Summary as of August 31, 2009 BlackRock Limited Duration Income Trust

Investment Objective

BlackRock Limited Duration Income Trust (BLW) (the “Fund”) seeks to provide current income and capital appreciation.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned 6.40% based on market price and (1.57)% based on NAV. For the same period, the closed-
end Lipper High Current Yield Funds (Leveraged) category posted an average return of (2.57)% on a market price basis and (10.55)% on a NAV basis. All
returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance
based on price and performance based on NAV. The Fund’s Lipper category is composed primarily of high yield securities. The Fund tends to invest 25% to
30% of its portfolio in investment-grade bonds, which helped relative performance as these securities outperformed high yield securities. Exposure to mort-
gage-backed securities and an overall conservative positioning in high yield securities also aided results. At the same time, the Fund typically invests about
30% to 40% of its portfolio in bank loans; this detracted modestly from relative performance as loans underperformed high yield securities during the
period. The Fund’s allocation to investment-grade credit, while performing strongly, was a detractor in the last six months of the period when returns trailed
that of high yield securities. During the period, the Fund moved from a larger cash and short-term investment balance, which benefited performance in
2008, to a balance of less than 18%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Symbol on NYSE              BLW 
Initial Offering Date            July 30, 2003 
Yield on Closing Market Price as of August 31, 2009 ($14.09)1          7.03% 
Current Monthly Distribution per Share2              $0.0825 
Current Annualized Distribution per Share2            $0.9900 
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance 
       does not guarantee future results.               
   2 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Share was decreased to $0.0700. The Yield on 
Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. 
       The new distribution rate is not constant and is subject to further change in the future.         
The table below summarizes the Fund’s market price and net asset value per share:       
      8/31/09  8/31/08  Change  High  Low 
Market Price      $14.09  $14.57  (3.29)%  $14.83  $ 8.83 
Net Asset Value      $14.95  $16.71  (10.53)%  $16.81  $11.86 
The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations 
of the Fund’s corporate bond and US government securities investments:         
     Portfolio Composition                   Credit Quality Allocations3     
  8/31/09  8/31/08        8/31/09  8/31/08 
Floating Rate Loan Interests  45%  46%         AAA/Aaa4    53%  47% 
Corporate Bonds  24  32         BBB/Baa      6  8 
U.S. Government Sponsored             BB/Ba      11  10 
   Agency Obligations  26  16         B      10  25 
U.S. Treasury Obligations  1  4         CCC/Caa      16  7 
Foreign Agency Obligations  2  2         C      1  — 
Asset-Backed Securities  2  —         D      1  — 
             Not Rated    2  3 
               3 Using the higher of S&P’s or Moody’s ratings.   
               4 Includes US Government Sponsored Agency securities and 
                   US Treasury Obligations, which are deemed AAA/Aaa by the 
                   investment advisor.       

ANNUAL REPORT AUGUST 31, 2009 7

Fund Summary as of August 31, 2009 BlackRock Senior Floating Rate Fund, Inc.

Investment Objective

BlackRock Senior Floating Rate Fund, Inc. (the “Fund”) is a continuously offered closed-end fund that seeks high current income and such preservation of
capital as is consistent with investment in senior collateralized corporate loans made by banks and other financial institutions.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (4.69)% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds
category posted an average return of (13.39)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund maintained relatively defensive sector
positioning and no leverage, which benefited performance over the 12 months versus its Lipper competitors, many of which employ leverage. The Fund also
had about 9% of its portfolio in high yield bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund’s
conservative positioning was a detractor given the market’s strong returns. During the period, the Fund moved from a larger cash and short-term investment
balance, which benefited performance in 2008, to a balance of less than 8%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

     Fund Information1               
                                                 Initial Offering Date            November 3, 1989 
                                                 Yield based on Net Asset Value as of August 31, 2009 ($7.16)2        3.60% 
                                                 Current Monthly Distribution per Share3            $0.021903 
                                                 Current Annualized Distribution per Share3          $0.257890 
                                                       1 The Fund is a continuously offered closed-end fund that does not trade on an exchange.       
2 Yield based on net asset value is calculated by dividing the current annualized distribution per share by the net asset value.   
                                                           Past performance does not guarantee future results.           
                                                       3 The distribution is not constant and is subject to change.           
                                                 The table below summarizes the change in the Fund’s NAV per share:         
      8/31/09  8/31/08  Change  High  Low 
                                                 Net Asset Value      $7.16  $7.98  (10.28)%  $7.98  $5.54 
     Expense Example for Continuously Offered Closed-End Funds             
    Actual      Hypothetical5   
  Beginning  Ending    Beginning  Ending     
  Account Value  Account Value  Expenses Paid  Account Value  Account Value  Expenses Paid 
  March 1, 2009  August 31, 2009  During the Period4  March 1, 2009 August 31, 2009 During the Period4 
BlackRock Senior Floating Rate, Inc.  $1,000  $1,232.80  $8.72  $1,000  $1,017.39  $7.88 
   4 Expenses are equal to the annualized expense ratio of 1.55%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year 
       period shown). Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it invests.   
   5 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.     
       See “Disclosure of Expenses for Continuously Offered Closed-End Funds” on page 11 for further information on how expenses were calculated.     

8 ANNUAL REPORT AUGUST 31, 2009

Fund Summary as of August 31, 2009 BlackRock Senior Floating Rate Fund II, Inc.

Investment Objective

BlackRock Senior Floating Rate Fund II, Inc. (the “Fund”) is a continuously offered closed-end fund that seeks high current income and such preservation
of capital as is consistent with investment in senior collateralized corporate loans made by banks and other financial institutions.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2009, the Fund returned (4.70)% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds
category posted an average return of (13.39)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund maintained relatively defensive sector
positioning and no leverage, which benefited performance over the 12 months versus its Lipper competitors, many of which employ leverage. The Fund also
had about 9% of its portfolio in high yield bonds, which was beneficial as high yield outperformed loans. During the last six months, however, the Fund’s
conservative positioning was a detractor given the market’s strong returns. During the period, the Fund moved from a larger cash and short-term investment
balance, which benefited performance in 2008, to a balance of less than 8%, which further benefited performance in the rising market of 2009.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

     Fund Information1               
                                                 Initial Offering Date              March 26, 1999 
                                                 Yield based on Net Asset Value as of August 31, 2009 ($7.76)2        3.44% 
                                                 Current Monthly Distribution per Share3            $0.022653 
                                                 Current Annualized Distribution per Share3          $0.266721 
                                                       1 The Fund is a continuously offered closed-end fund that does not trade on an exchange.       
2 Yield based on net asset value is calculated by dividing the current annualized distribution per share by the net asset value.   
                                                           Past performance does not guarantee future results.           
                                                       3 The distribution is not constant and is subject to change.           
                                                 The table below summarizes the change in the Fund’s NAV per share:         
      8/31/09  8/31/08  Change  High  Low 
                                                 Net Asset Value      $7.76  $8.67  (10.50)%  $8.67 $6.02 
     Expense Example for Continuously Offered Closed-End Funds             
    Actual      Hypothetical5   
  Beginning  Ending    Beginning  Ending     
  Account Value  Account Value  Expenses Paid  Account Value  Account Value     Expenses Paid 
  March 1, 2009  August 31, 2009  During the Period4  March 1, 2009 August 31, 2009  During the Period4 
BlackRock Senior Floating Rate II, Inc.  $1,000  $1,233.70  $9.46  $1,000  $1,016.74  $8.54 
   4 Expenses are equal to the annualized expense ratio of 1.68%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year 
       period shown). Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it invests.   
   5 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.     
       See “Disclosure of Expenses for Continuously Offered Closed-End Funds” on page 11 for further information on how expenses were calculated.     

ANNUAL REPORT AUGUST 31, 2009 9

The Benefits and Risks of Leveraging

BlackRock Defined Opportunity Credit Trust, BlackRock Diversified Income
Strategies Fund, Inc., BlackRock Floating Rate Income Strategies Fund, Inc.
and BlackRock Limited Duration Income Trust (each a “Fund” and collec-
tively, the “Funds”) may utilize leverage to seek to enhance the yield and
NAV. However, these objectives cannot be achieved in all interest rate
environments.

The Funds may utilize leverage through borrowings or through entering into
reverse repurchase agreements and dollar rolls. In general, the concept of
leveraging is based on the premise that the cost of assets to be obtained
from leverage will be based on short-term interest rates, which normally will
be lower than the income earned by each Fund on its longer-term portfolio
investments. To the extent that the total assets of each Fund (including the
assets obtained from leverage) are invested in higher-yielding portfolio
investments, each Fund’s shareholders will benefit from the incremental
net income.

The interest earned on securities purchased with the proceeds from lever-
age is paid to shareholders in the form of dividends, and the value of these
portfolio holdings is reflected in the per share NAV. However, in order to
benefit shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest rates. If the
yield curve becomes negatively sloped, meaning short-term interest rates
exceed long-term interest rates, income to shareholders will be lower than if
the Fund had not used leverage.

To illustrate these concepts, assume a Fund’s capitalization is $100 million
and it borrows for an additional $30 million, creating a total value of $130
million available for investment in long-term securities. If prevailing short-
term interest rates are 3% and long-term interest rates are 6%, the yield
curve has a strongly positive slope. In this case, the Fund pays borrowing
costs and interest expense on the $30 million of borrowings based on the
lower short-term interest rates. At the same time, the securities purchased
by the Fund with assets received from the borrowings earn the income
based on long-term interest rates. In this case, the borrowing costs and
interest expense of the borrowings is significantly lower than the income
earned on the Fund’s long-term investments, and therefore Common
Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental net income pickup on the
Shares will be reduced or eliminated completely. Furthermore, if prevailing
short-term interest rates rise above long-term interest rates of 6%, the yield
curve has a negative slope. In this case, the Fund pays interest expense on
the higher short-term interest rates whereas the Fund’s total portfolio earns
income based on lower long-term interest rates.

Furthermore, the value of the Fund’s portfolio investments generally varies
inversely with the direction of long-term interest rates, although other fac-
tors can influence the value of portfolio investments. In contrast, the
redemption value of the Fund’s borrowings do not fluctuate in relation to
interest rates. As a result, changes in interest rates can influence the Fund’s
NAV positively or negatively in addition to the impact on Fund performance
from leverage from borrowings.

The use of leverage may enhance opportunities for increased income to
the Funds and shareholders, but as described above, it also creates risks
as short- or long-term interest rates fluctuate. Leverage also will generally
cause greater changes in each Fund’s NAV, market price and dividend rate
than a comparable portfolio without leverage. If the income derived from
securities purchased with assets received from leverage exceeds the cost
of leverage, each Fund’s net income will be greater than if leverage had
not been used. Conversely, if the income from the securities purchased is
not sufficient to cover the cost of leverage, each Fund’s net income will be
less than if leverage had not been used, and therefore the amount avail-
able for distribution to shareholders will be reduced. Each Fund may be
required to sell portfolio securities at inopportune times or at distressed
values in order to comply with regulatory requirements applicable to the
use of leverage or as required by the terms of leverage instruments which
may cause the Funds to incur losses. The use of leverage may limit a
Funds’ ability to invest in certain types of securities or use certain types of
hedging strategies. Each Fund will incur expenses in connection with the
use of leverage, all of which are borne by the shareholders of each Fund
and may reduce income.

Under the Investment Company Act of 1940, the Funds are permitted
to borrow through their credit facility up to 33 1 / 3 % of their total managed
assets. As of August 31, 2009, BlackRock Limited Duration Income Trust
had no outstanding leverage and the other Funds had outstanding leverage
from borrowings as a percentage of their total managed assets as follows:

  Percent of 
  Leverage 
BHL  19% 
DVF  14% 
FRA  14% 

10 ANNUAL REPORT AUGUST 31, 2009

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including swap
agreements, financial futures contracts, foreign currency exchange contracts
and options, as specified in Note 2 of the Notes to Financial Statements,
which constitute forms of economic leverage. Such instruments are used to
obtain exposure to a market without owning or taking physical custody of
securities or to hedge market and/or interest rate risks. Such derivative
instruments involve risks, including the imperfect correlation between the
value of a derivative instrument and the underlying asset, possible default
of the counterparty to the transaction and illiquidity of the derivative instru-

ment. The Funds’ ability to successfully use a derivative instrument
depends on the investment advisor’s ability to accurately predict pertinent
market movements, which cannot be assured. The use of derivative instru-
ments may result in losses greater than if they had not been used, may
require the Funds to sell or purchase portfolio securities at inopportune
times or for distressed values, may limit the amount of appreciation the
Funds can realize on an investment or may cause the Funds to hold a
security that it might otherwise sell. The Funds’ investments in these
instruments are discussed in detail in the Notes to Financial Statements.

Disclosure of Expenses for Continuously Offered Closed-End Funds

Shareholders of BlackRock Senior Floating Rate Fund, Inc. and
BlackRock Senior Floating Rate Fund II, Inc. may incur the following charges:
(a) expenses related to transactions, including early withdrawal fees; and
(b) operating expenses, including administration fees, and other Fund
expenses. The examples on the previous pages (which are based on a hypo-
thetical investment of $1,000 invested on March 1, 2009 and held through
August 31, 2009) are intended to assist shareholders both in calculating
expenses based on an investment in each Fund and in comparing
these expenses with similar costs of investing in other mutual funds.

The tables provide information about actual account values and actual
expenses. In order to estimate the expenses a shareholder paid during
the period covered by this report, shareholders can divide their account
value by $1,000 and then multiply the result by the number under the
heading entitled “Expenses Paid During the Period.”

The tables also provide information about hypothetical account values and
hypothetical expenses based on each Fund’s actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in these
Funds and other funds, compare the 5% hypothetical example with the 5%
hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the tables are intended to highlight shareholders’
ongoing costs only and do not reflect any transactional expenses, such
as early withdrawal fees. Therefore, the hypothetical examples are useful
in comparing ongoing expenses only, and will not help shareholders deter-
mine the relative total expenses of owning different funds. If these trans-
actional expenses were included, shareholder expenses would have
been higher.

ANNUAL REPORT AUGUST 31, 2009 11

Schedule of Investments August 31, 2009   
Common Stocks    Shares   Value 
Capital Markets — 0.4%       
E*Trade Financial Corp. (a)  273,000 $  480,480 
Total Common Stocks — 0.4%      480,480 
    Par   
Corporate Bonds    (000)   
Chemicals — 0.2%       
Nalco Co., 8.25%, 5/15/17 (b)  USD  250  261,250 
Commercial Services & Supplies — 0.4%       
Clean Harbors, Inc., 7.63%, 8/15/16 (b)    400  401,000 
Containers & Packaging — 0.5%       
Crown Americas LLC, 7.63%, 5/15/17 (b)    280  277,900 
Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16    280  278,600 
      556,500 
Diversified Financial Services — 0.2%       
FCE Bank Plc:       
     7.13%, 1/16/12  EUR  100  129,742 
     7.13%, 1/15/13    50  62,720 
      192,462 
Diversified Telecommunication Services — 0.8%       
PAETEC Holding Corp., 8.88%, 6/30/17 (b)  USD  250  238,125 
Qwest Corp., 3.88%, 6/15/13 (c)    750  693,750 
      931,875 
Food Products — 0.4%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    440  448,800 
Hotels, Restaurants & Leisure — 0.2%       
MGM Mirage, 11.13%, 11/15/17 (b)    240  259,800 
IT Services — 0.3%       
SunGard Data Systems, Inc., 4.88%, 1/15/14    383  344,700 
Independent Power Producers & Energy Traders — 1.0%       
Calpine Construction Finance Co., LP, 8.00%, 6/01/16 (b)  1,165  1,159,175 
Machinery — 0.2%       
CPM Holdings, Inc., 10.63%, 9/01/14 (b)    200  202,000 
Media — 1.2%       
Cablevision Systems Corp., Series B, 8.00%, 4/15/12    710  725,975 
DIRECTV Holdings LLC, 8.38%, 3/15/13    650  666,250 
      1,392,225 
Paper & Forest Products — 0.2%       
Verso Paper Holdings LLC, 11.50%, 7/01/14 (b)    200  196,000 
Textiles, Apparel & Luxury Goods — 0.6%       
Levi Strauss & Co., 8.63%, 4/01/13  EUR  450  616,094 
Wireless Telecommunication Services — 1.3%       
Cricket Communications, Inc., 7.75%, 5/15/16 (b)  USD  1,500  1,455,000 
Total Corporate Bonds — 7.5%      8,416,881 
Floating Rate Loan Interests       
Aerospace & Defense — 1.0%       
Avio SpA:       
     Facility B2, 2.39%, 12/15/14    468  393,380 
     Facility C2, 3.01%, 12/14/15    500  420,000 
Hawker Beechcraft Acquisition Co., LLC:       
     LC Facility Deposit, 2.28%, 3/26/14    23  17,391 
     Term Loan, 2.26% – 2.60%, 3/26/14    395  294,670 
      1,125,441 

BlackRock Defined Opportunity Credit Trust (BHL) 
(Percentages shown are based on Net Assets) 
    Par   
Floating Rate Loan Interests    (000)   Value 
Auto Components — 3.6%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14  USD  2,172 $  1,854,027 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    1,301  995,881 
Delphi Corp. (a)(d):       
     Initial Tranche Term Loan C, 9.50%, 12/31/09    908  499,164 
     Subsequent Tranche Term Loan C, 9.50%, 12/31/09    92  50,836 
The Goodyear Tire & Rubber Co., Loan (Second Lien),       
     2.02%, 4/30/14    750  691,875 
      4,091,783 
Automobiles — 0.4%       
Ford Motor Co., Term Loan, 3.28% – 3.51%, 12/15/13    498  431,615 
Building Products — 1.6%       
Building Materials Corp. of America, Term Loan Advance,       
 3.06%, 2/22/14    741  676,428 
Momentive Performance Materials (Blitz 06-103 GmbH),       
 Tranche B-2 Term Loan, 2.74%, 12/04/13  EUR  997  1,076,830 
      1,753,258 
Capital Markets — 0.4%       
Nuveen Investments, Inc., Term Loan, 3.49% – 3.50%,       
 11/13/14  USD  598  485,499 
Chemicals — 7.6%       
Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14    800  813,373 
Brenntag Holding GmbH & Co. KG, Facility B2, 2.27%,       
 1/20/14    978  929,090 
Cognis GmbH, Facility C, 2.62%, 9/15/13    1,000  847,500 
Huish Detergents Inc., Tranche B Term Loan, 2.02%,       
 4/26/14    987  941,326 
Matrix Acquisition Corp. (fka MacDermid, Inc.), Tranche B       
 Term Loan, 2.26%, 4/12/14    1,557  1,292,256 
Nalco Co., Term Loan, 6.50%, 5/06/16    1,225  1,241,844 
PQ Corp. (fka Niagara Acquisition, Inc.):       
     Loan (Second Lien), 6.77%, 7/30/15    1,000  550,000 
     Original Term Loan (First Lien), 3.52% – 3.75%,       
     7/31/14    1,239  1,021,448 
Solutia Inc., Loan, 7.25%, 2/28/14    987  977,389 
      8,614,226 
Commercial Services & Supplies — 4.2%       
ARAMARK Corp.:       
     LC Facility Letter of Credit, 0.22%, 1/26/14    120  111,797 
     U.S. Term Loan, 2.47%, 1/26/14    1,881  1,759,753 
Alliance Laundry Systems LLC, Term Loan, 2.79% – 4.75%,     
 1/27/12    737  706,447 
Casella Waste Systems, Inc., Term B Loan, 7.00%,       
 4/09/14    500  501,250 
Kion Group GmbH (formerly Neggio Holdings 3 GmbH):       
     Facility B, 2.51%, 12/29/14    500  317,188 
     Facility C, 2.76%, 12/29/15    500  317,188 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.26% – 2.27%, 4/02/14    987  777,582 
West Corp., Term B-2 Loan, 2.64% – 2.65%, 10/24/13    209  198,498 
      4,689,703 
Computers & Peripherals — 0.8%       
Intergraph Corp., Initial Term Loan (First Lien), 2.37%,       
 5/29/14    1,000  960,000 
Containers & Packaging — 3.9%       
Crown Americas LLC, Additional Term B Dollar Loan,       
 2.02%, 11/15/12    495  487,887 
Graham Packaging Co., L.P., Term Loan B, 2.56%, 10/07/11  449  436,509 
Graphic Packaging International, Inc., Incremental Term       
 Loan, 3.08% – 3.35%, 5/16/14    1,480  1,442,975 
Smurfit Kappa Acquisitions (JSG):       
     C1 Term Loan Facility, 4.12% – 4.87%, 12/01/14  EUR  484  662,379 
     Term B1, 3.87% – 4.73%, 12/02/13    486  665,768 
Smurfit-Stone Container Enterprises, Inc., U.S. Term       
 Loan Debtor in Possession, 10.00%, 1/28/10    720  726,993 
      4,422,511 

See Notes to Financial Statements.

12 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
Diversified Consumer Services — 1.3%       
Coinmach Laundry Corp., Delay Draw Term Loan,       
 3.28% – 3.43%, 11/14/14  USD  1,730  $ 1,470,989 
Diversified Telecommunication Services — 4.7%       
BCM Ireland Holdings Ltd. (Eircom):       
     Facility B, 2.37%, 9/30/15  EUR  492  641,866 
     Facility C, 2.62%, 9/30/16    492  641,938 
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14  USD  506  307,082 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    1,972  1,932,952 
PAETEC Holding Corp., Replacement Term Loan, 2.76%,       
 2/28/13    193  182,138 
Time Warner Telecom Holdings Inc., Term Loan B,       
 2.02%, 1/07/13    152  148,532 
Wind Finance SL SA, Euro Facility (Second Lien), 7.70%,       
 12/17/14  EUR  1,000  1,437,910 
      5,292,418 
Electrical Equipment — 0.4%       
Baldor Electric Co., Term Loan, 5.25%, 1/31/14  USD  500  493,214 
Electronic Equipment, Instruments &       
Components — 2.2%       
Flextronics International Ltd.:       
     A Closing Date Loan, 2.53% – 2.85%, 10/1/2014    761  682,443 
     Delay Draw Term Loan, 2.76%, 10/01/14    219  196,104 
L-1 Identity Solutions Operating Co., Term Loan, 6.75%,       
 8/05/13    678  678,839 
Matinvest 2 SAS/Butterfly Wendel US, Inc.       
 (Deutsche Connector):       
     B-2 Facility, 2.97%, 6/22/14    886  496,037 
     C-2 Facility 3.22%, 6/22/15    732  409,854 
      2,463,277 
Energy Equipment & Services — 0.8%       
Dresser, Inc., Term B Loan, 2.68%, 5/04/14    513  478,350 
Volnay Acquisition Co., I (aka CGG) B1 Term Loan Facility,       
 3.93% – 4.58%, 1/12/14    421  407,944 
      886,294 
Food & Staples Retailing — 1.9%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.53%, 7/09/15  GBP  1,000  1,394,856 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15  USD  500  517,500 
Wm. Bolthouse Farms, Inc., Term Loan (First Lien),       
 2.56%, 12/16/12    189  182,345 
      2,094,701 
Food Products — 2.7%       
Dole Food Co. Inc.:       
     Credit-Linked Deposit, 0.51%, 4/12/13    127  128,241 
     Tranche B Term Loan, 8.00%, 4/12/13    223  224,177 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    830  835,304 
Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,       
 10/06/14    1,894  1,915,765 
      3,103,487 
Health Care Equipment & Supplies — 2.9%       
Bausch & Lomb, Inc.:       
     Delayed Draw Term Loan, 3.51% – 3.85%,       
     4/24/2015    98  92,698 
     Parent Term Loan, 3.85%, 4/24/15    386  365,232 
Biomet, Inc., Dollar Term Loan, 3.26% – 3.61%,       
 3/25/15    1,323  1,268,924 

    Par   
Floating Rate Loan Interests    (000)           Value 
Health Care Equipment & Supplies (concluded)       
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.26% – 3.60%, 5/20/14  USD  985  $ 940,675 
Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13    141  136,067 
Iasis Healthcare:       
     Delayed Draw Term Loan, 2.26%, 3/14/14    120  113,037 
     Initial Term Loan, 2.26%, 3/14/14    347  326,645 
     Synthetic Line of Credit, 0.16%, 3/14/14    32  30,448 
      3,273,726 
Health Care Providers & Services — 10.9%       
CCS Medical, Inc. (Chronic Care), Term Loan (First Lien),     
 4.35%, 9/30/12 (a)(d)    275  124,094 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.51%, 7/25/14    164  153,120 
     Funded Term Loan, 2.51% — 2.62%, 7/25/14    3,233  3,011,726 
DaVita Inc., Tranche B-1 Term Loan, 1.77% – 2.10%,       
 10/05/12    800  767,666 
Fresenius AG:       
     Term Loan B1, 6.75%, 7/06/14    712  715,118 
     Term Loan B2, 6.75%, 7/06/14    430  431,963 
HCA Inc., Tranche A-1 Term Loan, 2.10%, 11/17/12    3,667  3,423,345 
HealthSouth Corp., Term Loan, 2.52% – 2.53%, 3/10/13  1,753  1,695,173 
Surgical Care Affiliates, LLC, Term Loan, 2.60%, 12/29/14  343  309,417 
Symbion, Inc.:       
     Tranche A Term Loan, 3.51%, 8/23/13    474  414,358 
     Tranche B Term Loan, 3.51%, 8/25/14    474  414,358 
Vanguard Health Holding Co. II, LLC (Vanguard Health System,     
 Inc.), Replacement Term Loan, 2.51%, 9/23/11    858  834,974 
      12,295,312 
Health Care Technology — 0.4%       
Sunquest Information Systems, Inc. (Misys Hospital Systems,     
 Inc.), Term Loan, 3.52% – 3.74%, 10/13/14    491  447,856 
Hotels, Restaurants & Leisure — 3.4%       
BLB Worldwide Holdings, Inc. (Wembley, Inc.), First Priority     
 Term Loan, 4.75%, 9/01/09 (a)(d)    1,000  550,000 
Harrah’s Operating Co., Inc., Term B-2 Loan, 3.50%,       
 1/28/15    1,525  1,228,509 
Penn National Gaming, Inc., Term Loan B, 2.03% – 2.21%,     
 10/03/12    936  910,054 
QCE, LLC (Quiznos), Term Loan (First Lien), 2.88%,       
 5/05/13    987  735,522 
VML US Finance LLC (aka Venetian Macau), Term B:       
     Delayed Draw Project Loan, 6.10%, 5/25/12    180  164,908 
     Funded Project Loan, 6.10%, 5/27/13    318  291,270 
      3,880,263 
Household Durables — 2.3%       
Jarden Corp., Term Loan B3, 3.10%, 1/24/12    1,428  1,409,490 
Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14  1,221  1,132,407 
      2,541,897 
Household Products — 0.3%       
VI-JON, Inc. (VJCS Acquisition, Inc.), Tranche B Term Loan,     
 2.28%, 4/24/14    341  311,733 
IT Services — 6.0%       
Amadeus Global Travel Distribution SA, GmbH       
 (WAM Acquisition):       
     Term Loan B, 2.28%, 7/01/13    955  835,558 
     Term Loan C, 2.78%, 7/01/14    955  835,558 
Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14    1,977  1,692,520 
First Data Corp.:       
     Initial Tranche B-1 Term Loan, 3.01% – 3.02%,       
     9/24/14    741  616,994 
     Initial Tranche B-2 Term Loan, 3.01% – 3.02%,       
     9/24/14    1,027  854,350 
     Initial Tranche B-3 Term Loan, 3.01% – 3.02%,       
     9/24/14    986  819,922 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 13

Schedule of Investments (continued) BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
IT Services (concluded)       
SunGard Data Systems Inc:       
     (Solar Capital Corp.), New US Term Loan, 6.75%,     
     2/28/14  USD  898  $ 892,270 
     Term Loan B, 3.95% – 4.09%, 2/28/16    226  218,615 
      6,765,787 
Independent Power Producers & Energy Traders — 6.0%     
Dynegy Holdings Inc.:       
     Term LC Facility Term Loan, 4.02%, 4/02/13    208  199,925 
     Tranche B Term Loan, 4.02%, 4/02/13    17  16,176 
Mirant North America, LLC, Term Loan, 2.01%, 1/03/13  677  646,844 
NRG Energy, Inc.:       
     Credit-Linked Deposit, 0.50%, 2/01/13    164  154,241 
     Term Loan, 2.01% – 2.35%, 2/01/13    1,597  1,506,337 
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan, 3.78% – 3.79%,       
     10/10/14    494  375,226 
     Initial Tranche B-2 Term Loan, 3.78% – 3.79%,       
     10/10/14    499  379,036 
     Initial Tranche B-3 Term Loan, 3.78% – 3.79%,       
     10/10/14    4,679  3,540,677 
      6,818,462 
Industrial Conglomerates — 0.7%       
Sequa Corp., Term Loan, 3.65% – 3.88%, 12/03/14    989  842,978 
Insurance — 0.6%       
Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14    736  676,749 
Internet & Catalog Retail — 0.2%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14  236  233,672 
Life Sciences Tools & Services — 0.9%       
Life Technologies Corp., Term B Facility, 5.25%,       
 11/20/15    991  1,000,531 
Machinery — 3.1%       
LN Acquisition Corp. (Lincoln Industrial):       
     Delayed Draw Term Loan (First Lien), 2.83%,       
     7/11/14    254  227,803 
     Initial U.S. Term Loan (First Lien), 2.78% – 2.83%,     
     7/11/14    677  607,474 
Navistar Financial Corp., Tranche A Term Loan, 2.31%,     
 3/27/10    299  290,244 
Navistar International Corp.:       
     Revolving Credit-Linked Deposit, 3.36% – 3.51%,     
     1/19/12    533  496,000 
     Term Advance, 3.51%, 1/19/12    1,467  1,364,000 
Oshkosh Truck Corp., Term Loan B, 6.60% – 6.64%,       
 12/06/13    504  501,171 
      3,486,692 
Media — 28.9%       
AlixPartners, LLP, Tranche C Term Loan, 2.28% – 2.51%,     
 10/12/13    500  486,250 
Alpha Topco Ltd. (Formula One), Facility B2, 2.51%,       
 12/31/13    938  789,013 
Bresnan Communications, LLC, Additional Term Loan B     
 (First Lien), 2.51% – 2.61%, 6/30/13    448  429,360 
CSC Holdings Inc. (Cablevision), Incremental B Term Loan,     
 2.02% – 2.07%, 3/29/13    1,719  1,662,067 
Catalina Marketing Corp., Initial Term Loan, 3.03%,       
 10/01/14    797  748,603 
Cengage Learning Acquisitions, Inc. (Thomson Learning),     
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14  1,900  1,824,000 
Cequel Communications, LLC, Term Loan, 2.27%,       
 11/05/13    2,463  2,326,430 

    Par   
Floating Rate Loan Interests    (000)           Value 
Media (concluded)       
Charter Communications Operating, LLC:       
     Replacement Term Loan, 6.25%, 3/06/14 (a)(d)  USD  1,284  $ 1,191,296 
     Term Loan B1, 7.94%, 3/25/14    1,500  1,499,250 
FoxCo Acquisition Sub, LLC, Term Loan, 7.25%, 7/14/15    672  550,729 
Gray Television, Inc., Term Loan B, 3.78%, 12/31/14    480  346,190 
HMH Publishing Co., Ltd., Tranche A Term Loan, 5.26%,       
 6/12/14    2,011  1,556,311 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.52% – 2.54%, 3/08/14    495  208,715 
Hargray Acquisition Co./DPC Acquisition LLC/HCP       
 Acquisition LLC, Term Loan (First Lien), 2.72%, 6/27/14    487  443,974 
Harland Clarke Holdings Corp. (fka Clarke American Corp.),     
 Tranche B Term Loan, 2.76% – 3.10%, 6/30/14    525  428,700 
Insight Midwest Holdings, LLC, B Term Loan, 2.28%,       
 4/07/14    500  477,143 
Intelsat Corp. (fka PanAmSat Corp.):       
     B-2-B Term Loan, 2.78%, 1/03/14    660  624,349 
     B-2-C Term Loan, 2.78%, 1/03/14    660  624,349 
     Tranche B-2-A Term Loan, 2.78%, 1/03/14    660  624,539 
Lamar Advertising Co.:       
     Term Loan B, 5.50%, 9/30/12    250  246,250 
     Term Loan E, 5.50%, 3/15/13    741  734,145 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.53%, 3/06/15  EUR  1,010  818,408 
     Facility C1, 3.78%, 3/04/16    1,010  818,408 
Local TV Finance, LLC Term Loan, 2.27%, 5/07/13  USD  964  658,440 
MCC Iowa LLC (Mediacom Broadband Group):       
     Tranche D-1 Term Loan, 2.01%, 1/31/15    376  351,197 
     Tranche E Term Loan, 6.50%, 11/30/15    823  823,951 
NTL Cable Plc B-7 Facility Term Loan, 5.39%, 3/09/12    469  709,198 
NV Broadcasting, LLC:       
     Term Loan, Debtor in Possession, 13.00%,       
     2/28/10  USD  239  236,238 
     Term Loan (First Lien), 5.25%, 11/01/13 (a)(d)    1,639  409,710 
Newsday, LLC:       
     Fixed Rate Term Loan, 9.75%, 8/01/13    250  254,375 
     Floating Rate Term Loan, 6.01%, 8/01/13    500  493,750 
Nielson Finance LLC:       
     Class A Dollar Term Loan, 2.28%, 8/09/13    763  709,903 
     Class B Dollar Term Loan, 4.03%, 5/01/16    1,592  1,492,607 
Parkin Broadcasting, LLC Term Loan, 5.25%,       
 11/01/13 (a)(d)    336  84,042 
Sunshine Acquisition Ltd. (aka HIT Entertainment), Term       
 Facility, 2.73%, 6/01/12    1,751  1,455,341 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    1,395  1,402,854 
Tribune Co., Debtor in Possession Term Loan, 9.00%,       
 4/07/10    350  351,750 
UPC Financing Partnership, Facility U, 4.54%,       
 12/31/17  EUR  1,600  2,093,070 
Virgin Media Investment Holdings Ltd. (fka NTL):       
     B-1 Facility Term Loan, 3.89%, 7/30/12  GBP  206  308,698 
     C Facility, 3.62%, 7/17/13    165  236,378 
     Term Loan B, 5.39%, 3/09/12    281  424,260 
World Color Press Inc. and World Color (USA) Corp. (fka       
 Quebecor World Inc.), Advance, 9.00%, 7/21/12  USD  650  645,125 
      32,599,366 
Metals & Mining — 0.8%       
Essar Steel Algoma Inc. (fka Algoma Steel Inc.), Term       
 Loan, 2.77%, 6/20/13    990  890,909 

See Notes to Financial Statements.

14 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)         Value 
Multi-Utilities — 0.4%       
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     First Lien Term Loan B, 3.13%, 11/01/13  USD  443 $  407,773 
     Synthetic Letter of Credit, 0.48%, 11/01/13    57  52,540 
      460,313 
Multiline Retail — 1.3%       
Dollar General Corp., Tranche B-1 Term Loan,       
 3.01% – 3.24%, 7/07/14    1,500  1,458,958 
Oil, Gas & Consumable Fuels — 0.7%       
Big West Oil, LLC, Initial Advance Loan, 4.50%, 5/15/14  352  323,806 
Vulcan Energy Corp. (fka Plains Resources Inc.),       
 Term B3 Loan, 5.50%, 8/12/11    500  493,125 
      816,931 
Paper & Forest Products — 3.1%       
Georgia-Pacific LLC, Term B Loan, 2.34% – 2.65%,       
 12/20/12    2,291  2,213,236 
NewPage Corp., Term Loan, 4.06%, 12/22/14    1,389  1,286,169 
      3,499,405 
Personal Products — 0.9%       
American Safety Razor Co., LLC Loan (Second Lien),       
 6.52%, 1/30/14    1,250  975,000 
Pharmaceuticals — 0.6%       
Warner Chilcott Co., Inc., Tranche B Acquisition Date       
 Term Loan, 2.26% – 2.60%, 1/18/12    482  478,611 
Warner Chilcott Corp., Tranche C Acquisition Date       
 Term Loan, 2.26%, 1/18/12    216  214,523 
      693,134 
Professional Services — 0.9%       
Booz Allen Hamilton Inc., Tranche B Term Loan, 4.50%,     
 7/31/15    993  992,503 
Specialty Retail — 0.8%       
Adesa, Inc., (KAR Holdings, Inc.), Initial Term Loan,       
 2.52%, 10/20/13    400  375,333 
General Nutrition Centers, Inc., Term Loan,       
 2.52% – 2.85%, 9/16/13    552  507,469 
      882,802 
Textiles, Apparel & Luxury Goods — 0.4%       
Hanesbrands Inc., Term B Loan (First Lien),       
 5.02% – 5.25%, 9/05/13    436  436,135 
Wireless Telecommunication Services — 2.5%       
Digicel International Finance Ltd., Tranche A, 3.13%,       
 3/01/12    1,175  1,116,250 
MetroPCS Wireless, Inc., Tranche B Term Loan,       
 2.56% – 2.75%, 11/03/13    1,272  1,195,985 
Ntelos Inc., Term B Advance, 5.75%, 7/31/15    500  498,750 
      2,810,985 
Total Floating Rate Loan Interests — 116.5%      131,470,515 
Total Investments (Cost — $146,223,408*) — 124.4%    140,367,876 
Liabilities in Excess of Other Assets — (24.4)%      (27,505,826) 
Net Assets — 100.0%    $112,862,050 
* The cost and unrealized appreciation (depreciation) of investments as of August 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost    $146,223,408 
       Gross unrealized appreciation    $ 2,824,269 
       Gross unrealized depreciation      (8,679,801) 
       Net unrealized depreciation    $ (5,855,532) 

(a) Non-income producing security.       
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. 
  These securities may be resold in transactions exempt from registration to qualified 
  institutional investors.         
(c) Variable rate security. Rate shown is as of report date.   
(d) Issuer filed for bankruptcy and/or is in default of interest payments.   
•  Investments in companies considered to be an affiliate of the Fund, for purposes of 
  Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
          Net   
          Activity  Income 
  BlackRock Liquidity Funds, TempFund    —  $ 6,279 
  BlackRock Liquidity Series, LLC       
     Cash Sweep Series    $(2,365,561)  $13,793 
•  For Fund compliance purposes, the Fund’s industry classifications refer to any 
  one or more of the industry sub-classifications used by one or more widely recog- 
  nized market indexes or ratings group indexes, and/or as defined by Fund manage- 
  ment. This definition may not apply for purposes of this report, which may combine 
  such industry sub-classifications for reporting ease.     
•  Foreign currency exchange contracts as of August 31, 2009 were as follows: 
            Unrealized 
  Currency  Currency    Settlement Appreciation 
  Purchased  Sold  Counterparty  Date  (Depreciation) 
  EUR  1,000 USD  1,434  Citibank NA  9/01/09  — 
  USD 9,015,715 EUR  6,450,000  Citibank NA  9/16/09  $ (231,252) 
  USD 2,682,215 GBP  1,641,000  Citibank NA     10/28/09  10,965 
  Total          $ (220,287) 
•  Currency Abbreviations:         
  EUR  Euro         
  GBP  British Pound         
  USD  US Dollar         
•  Financial Accounting Standards Board Statement of Financial Accounting Standards 
  No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes 
  a framework for measuring fair values and requires additional disclosures about the 
  use of fair value measurements. Various inputs are used in determining the fair value 
  of investments, which are as follows:       
  • Level 1 — price quotations in active markets/exchanges for identical securities 
  • Level 2 — other observable inputs (including, but not limited to: quoted prices for 
  similar assets or liabilities in markets that are active, quoted prices for identical or 
  similar assets or liabilities in markets that are not active, inputs other than quoted 
  prices that are observable for the assets or liabilities (such as interest rates, yield 
     curves, volatilities, prepayment speeds, loss severities, credit risks and default 
     rates) or other market-corroborated inputs)     
  • Level 3 — unobservable inputs based on the best information available in the 
     circumstances, to the extent observable inputs are not available (including the 
     Fund’s own assumptions used in determining the fair value of investments) 
  The inputs or methodology used for valuing securities are not necessarily an indica- 
  tion of the risk associated with investing in those securities. For information about the 
  Fund’s policy regarding valuation of investments and other significant accounting poli- 
  cies, please refer to Note 1 of the Notes to Financial Statements.   

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 15

Schedule of Investments (concluded) BlackRock Defined Opportunity Credit Trust (BHL)

The following table summarizes the inputs used as of August 31, 2009 in 
determining the fair valuation of the Fund’s investments:     
Valuation      Investments in 
Inputs      Securities 
      Assets 
Level 1 — Common Stocks      $ 480,480 
Level 2       
 Long-Term Investments:       
   Corporate Bonds      8,416,881 
   Floating Rate Loan Interests      106,975,159 
Total Level 2      115,392,040 
Level 3 — Floating Rate Loan Interests      24,495,356 
Total      $140,367,876 
Valuation    Other Financial 
Inputs    Instruments1 
  Assets  Liabilities 
Level 1    —  — 
Level 2  $ 10,965  $ (231,252) 
Level 3    60,517  — 
Total  $ 71,482  $ (231,252) 
 1 Other financial instruments are foreign currency exchange contracts 
and unfunded loan commitments, which are valued at the unrealized 
appreciation/depreciation on the instrument.     
The following is a reconciliation of investments for unobservable inputs (Level 3) 
used in determining fair value:       
Investments in Securities
      Floating Rate 
      Loan Interests 
Balance, as of August 31, 2008      $ 4,841,355 
Accrued discounts/premiums      — 
Realized gain (loss)      (418,772) 
Change in unrealized appreciation (depreciation)2    (1,001,736) 
Net purchases (sales)      (981,612) 
Net transfers in/out of Level 3      22,056,121 
Balance as of August 31, 2009      $ 24,495,356 
 2 Included in the related net change in unrealized appreciation/depreciation 
     on the Statements of Operations.       
The following is a reconciliation of other financial instruments for unobservable 
inputs (Level 3) used in determining fair value:       
Other Financial Instruments3
      Assets 
Balance, as of August 31, 2008      — 
Accrued discounts/premiums      — 
Realized gain (loss)      — 
Change in unrealized appreciation (depreciation)    — 
Net purchases (sales)      — 
Net transfers in/out of Level 3      $ 60,517 
Balance as of August 31, 2009      $ 60,517 
 3 Other financial instruments are unfunded loan commitments.   

See Notes to Financial Statements.

16 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments August 31, 2009 BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

  Par   
Asset-Backed Securities  (000)           Value 
North Street Referenced Linked Notes 2000-1     
 Ltd. Series 2005-8A Class D, 15.13%,     
 6/15/41 (a)(b)  USD 1,350  $ 528,255 
Total Asset-Backed Securities — 0.5%    528,255 
Common Stocks  Shares   
Building Products — 0.8%     
Masonite Worldwide Holdings (c)  20,955  847,630 
Capital Markets — 0.4%     
E*Trade Financial Corp. (c)  248,000  436,480 
Chemicals — 0.0%     
Wellman Holdings, Inc. (c)  1,613  403 
Electrical Equipment — 0.0%     
Medis Technologies Ltd. (c)  176,126  50,196 
Hotels, Restaurants & Leisure — 0.0%     
Buffets Restaurants Holdings, Inc. (c)  688  7 
Media — 0.3%     
Sirius XM Radio, Inc. (c)  435,000  292,973 
Metals & Mining — 0.0%     
Euramax International (c)  467  5,026 
Paper & Forest Products — 0.9%     
Ainsworth Lumber Co. Ltd.  311,678  449,830 
Ainsworth Lumber Co. Ltd. (b)(c)  349,782  503,215 
    953,045 
Software — 0.2%     
TiVo, Inc. (c)  21,000  206,010 
Total Common Stocks — 2.6%    2,791,770 
  Par   
Corporate Bonds  (000)   
Airlines — 0.3%     
United Air Lines, Inc., 12.75%, 7/15/12  USD 300  288,000 
Auto Components — 2.0%     
Allison Transmission, Inc., 11.00%, 11/01/15 (b)  63  56,700 
The Goodyear Tire & Rubber Co., 5.01%, 12/01/09 (a)  2,000  1,992,500 
Lear Corp., 8.75%, 12/01/16 (c)(d)  255  137,700 
    2,186,900 
Building Products — 2.2%     
CPG International I, Inc., 7.87%, 7/01/12 (a)  2,500  1,787,500 
Momentive Performance Materials, Inc. Series WI,     
 9.75%, 12/01/14  400  260,000 
Ply Gem Industries, Inc., 11.75%, 6/15/13  400  334,000 
    2,381,500 
Capital Markets — 1.2%     
E*Trade Financial Corp. (b):     
12.50%, 11/30/17 (e)  140  140,738 
3.16%, 8/31/19 (f)(g)  443  756,976 
Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)  724  304,080 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(e)  301  72,335 
Marsico Parent Superholdco, LLC, 14.50%,     
 1/15/18 (b)(e)  208  54,083 
    1,328,212 

    Par   
Corporate Bonds    (000)           Value 
Chemicals — 1.3%       
American Pacific Corp., 9.00%, 2/01/15  USD  440  $ 397,100 
Wellman Holdings, Inc., Subordinate Note (f):       
     Second Lien, 10.00%, 1/29/19 (b)    894  894,000 
     Third Lien, 5.00%, 1/29/19    279  139,683 
      1,430,783 
Commercial Banks — 0.1%       
Glitnir Banki HF (b)(c)(d):       
     4.15%, 4/20/10    65  12,837 
     6.38%, 9/25/12    265  52,337 
     Series EMTN, 3.00%, 6/30/10  EUR  20  5,878 
      71,052 
Commercial Services & Supplies — 1.5%       
Clean Harbors, Inc., 7.63%, 8/15/16 (b)  USD  400  401,000 
RSC Equipment Rental, Inc., 10.00%, 7/15/17 (b)    285  297,824 
West Corp., 11.00%, 10/15/16    985  908,662 
      1,607,486 
Construction Materials — 1.4%       
Nortek, Inc., 10.00%, 12/01/13    1,570  1,460,100 
Consumer Finance — 0.6%       
Ford Motor Credit Co. LLC, 3.26%, 1/13/12 (a)    815  678,487 
Containers & Packaging — 4.7%       
Berry Plastics Holding Corp., 4.50%, 9/15/14 (a)    2,235  1,609,200 
Crown Americas LLC, 7.63%, 5/15/17 (b)    210  208,425 
Graphic Packaging International, Inc., 9.50%, 6/15/17 (b)  420  430,500 
Packaging Dynamics Finance Corp., 10.00%, 5/01/16 (b)    1,570  502,400 
Smurfit Kappa Funding Plc, 7.75%, 4/01/15 (h)    1,000  810,000 
Solo Cup Co., 10.50%, 11/01/13 (b)    130  136,500 
Wise Metals Group LLC, 10.25%, 5/15/12    2,750  1,347,500 
      5,044,525 
Diversified Financial Services — 5.1%       
FCE Bank Plc, 7.125%, 1/16/12  EUR  2,400  3,113,800 
GMAC LLC (b):       
     7.25%, 3/02/11  USD  200  187,750 
     6.88%, 9/15/11    300  276,750 
     6.88%, 8/28/12    300  261,000 
     6.75%, 12/01/14    1,380  1,131,600 
     8.00%, 11/01/31    630  486,675 
      5,457,575 
Diversified Telecommunication Services — 1.2%       
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (b)    800  812,000 
PAETEC Holding Corp., 8.88%, 6/30/17 (b)    500  476,250 
      1,288,250 
Food & Staples Retailing — 0.1%       
Duane Reade, Inc., 11.75%, 8/01/15 (b)    80  80,800 
Food Products — 0.6%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    340  346,800 
Tyson Foods, Inc., 10.50%, 3/01/14    300  334,500 
      681,300 
Hotels, Restaurants & Leisure — 3.3%       
Harrah’s Operating Co., Inc. (b):       
     10.00%, 12/15/15    530  378,950 
     10.00%, 12/15/18    1,389  972,300 
Little Traverse Bay Bands of Odawa Indians, 10.25%,       
2/15/14 (b)(c)(d)    800  352,000 
MGM Mirage, 11.125%, 11/15/17 (b)    390  422,175 
Shingle Springs Tribal Gaming Authority, 9.38%, 6/15/15 (b)  95  67,450 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 17

Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)           Value 
Hotels, Restaurants & Leisure (concluded)       
Snoqualmie Entertainment Authority, 4.68%,       
 2/01/14 (a)(b)  USD  305  $ 149,450 
Travelport LLC, 4.986%, 9/01/14 (a)    810  587,250 
Tropicana Entertainment LLC Series WI, 9.63%,       
 12/15/14 (c)(d)    120  75 
Tunica-Biloxi Gaming Authority, 9.00%, 11/15/15 (b)    645  574,050 
      3,503,700 
Household Durables — 0.7%       
Standard Pacific Corp.:       
     6.25%, 4/01/14    140  109,900 
     7.00%, 8/15/15    465  365,025 
Stanley-Martin Communities LLC, 9.75%, 8/15/15    1,250  306,250 
      781,175 
IT Services — 1.0%       
Alliance Data Systems Corp., 1.75%, 8/01/13 (f)    370  329,300 
First Data Corp.:       
     9.88%, 9/24/15    255  218,025 
     11.25%, 3/31/16 (b)    60  45,900 
SunGard Data Systems, Inc., 4.88%, 1/15/14    549  494,100 
      1,087,325 
Independent Power Producers & Energy Traders — 2.4%       
AES Eastern Energy LP Series 99-B, 9.67%, 1/02/29    300  258,000 
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)    500  497,500 
Dynegy Holdings, Inc., 8.38%, 5/01/16    650  526,500 
Energy Future Holdings Corp., 11.25%, 11/01/17 (e)    1,060  606,743 
NRG Energy, Inc., 8.50%, 6/15/19    250  243,125 
Texas Competitive Electric Holdings Co. LLC, 10.50%,       
 11/01/16 (e)    845  468,895 
      2,600,763 
Industrial Conglomerates — 2.0%       
Sequa Corp. (b):       
     11.75%, 12/01/15    1,530  963,900 
     13.50%, 12/01/15 (e)    2,278  1,190,476 
      2,154,376 
Insurance — 0.4%       
USI Holdings Corp., 4.32%, 11/15/14 (a)(b)    490  378,525 
Leisure Equipment & Products — 0.5%       
Brunswick Corp., 11.25%, 11/01/16 (b)    565  591,837 
Machinery — 1.9%       
CPM Holdings, Inc., 10.63%, 9/01/14 (b)    200  202,000 
ESCO Corp., 4.50%, 12/15/13 (a)(b)    920  821,100 
RBS Global, Inc.:       
     9.50%, 8/01/14 (b)    199  183,080 
     8.88%, 9/01/16    505  405,262 
Titan International, Inc., 8.00%, 1/15/12    460  442,750 
      2,054,192 
Marine — 0.1%       
Navios Maritime Holdings, Inc., 9.50%, 12/15/14    141  123,375 
Media — 3.9%       
Affinion Group, Inc., 10.13%, 10/15/13    320  318,000 
CSC Holdings, Inc., 8.50%, 4/15/14 (b)    180  182,700 
Canadian Satellite Radio Holdings, Inc., 12.75%,       
 2/15/14    3,000  1,035,000 
Local Insight Regatta Holdings, Inc., 11.00%,       
 12/01/17    832  316,160 
TL Acquisitions, Inc., 10.50%, 1/15/15 (b)    1,570  1,428,700 
Virgin Media, Inc., 6.50%, 11/15/16 (b)(f)    1,000  906,250 
      4,186,810 

    Par   
Corporate Bonds    (000)           Value 
Metals & Mining — 1.3%       
Aleris International, Inc. (c)(d):       
     9.00%, 12/15/14  USD  370  $ 925 
     10.00%, 12/15/16    500  1,250 
RathGibson, Inc., 11.25%, 2/15/14 (c)(d)    1,390  500,400 
Ryerson, Inc., 7.86%, 11/01/14 (a)    1,075  913,750 
      1,416,325 
Oil, Gas & Consumable Fuels — 3.7%       
Atlas Energy Operating Co., LLC, 12.13%, 8/01/17    425  448,375 
Atlas Energy Resources LLC, 10.75%, 2/01/18 (b)    155  156,550 
Chesapeake Energy Corp., 9.50%, 2/15/15    455  464,100 
Denbury Resources, Inc., 9.75%, 3/01/16    1,150  1,210,375 
Forest Oil Corp.:       
     8.50%, 2/15/14 (b)    640  643,200 
     7.25%, 6/15/19    200  188,000 
SandRidge Energy, Inc., 4.22%, 4/01/14 (a)    1,000  830,368 
      3,940,968 
Paper & Forest Products — 5.5%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(e)    2,689  1,065,996 
Clearwater Paper Corp., 10.63%, 6/15/16 (b)    190  203,537 
NewPage Corp.:       
     6.73%, 5/01/12 (a)    3,000  1,282,500 
     10.00%, 5/01/12    1,820  987,350 
Verso Paper Holdings LLC:       
     11.50%, 7/01/14 (b)    160  156,800 
     Series B, 4.23%, 8/01/14 (a)    4,000  2,240,000 
      5,936,183 
Pharmaceuticals — 1.2%       
Angiotech Pharmaceuticals, Inc., 4.11%, 12/01/13 (a)    1,500  1,260,000 
Real Estate Management & Development — 0.7%       
Realogy Corp.:       
     10.50%, 4/15/14    410  243,950 
     12.38%, 4/15/15    1,385  560,925 
      804,875 
Semiconductors & Semiconductor Equipment — 1.5%       
Avago Technologies Finance Pte. Ltd., 5.86%,       
6/01/13 (a)    400  376,000 
Spansion, Inc., 3.79%, 6/01/13 (b)(c)(d)    1,410  1,251,375 
      1,627,375 
Software — 0.0%       
BMS Holdings, Inc., 8.35%, 2/15/12 (a)(b)(e)    466  7,489 
Specialty Retail — 1.1%       
General Nutrition Centers, Inc., 6.40%, 3/15/14 (a)    145  127,600 
Michaels Stores, Inc., 11.38%, 11/01/16    910  782,600 
United Auto Group, Inc., 7.75%, 12/15/16    355  312,400 
      1,222,600 
Wireless Telecommunication Services — 4.2%       
BCM Ireland Preferred Equity Ltd., 8.28%,       
     2/15/17 (b)(e)  EUR  302  112,579 
Cricket Communications, Inc., 7.75%, 5/15/16 (b)  USD  1,000  970,000 
Crown Castle International Corp., 9.00%, 1/15/15    100  104,000 
Digicel Group Ltd. (b):       
     8.88%, 1/15/15    1,070  954,975 
     9.13%, 1/15/15 (e)    2,129  1,876,181 
iPCS, Inc., 2.61%, 5/01/13 (a)    200  164,000 
Orascom Telecom Finance SCA, 7.88%, 2/08/14 (b)    325  292,500 
      4,474,235 
Total Corporate Bonds — 57.7%      62,137,098 

See Notes to Financial Statements.

18 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

Floating Rate Loan Interests    (000)           Value 
Airlines — 0.4%       
US Airways Group, Inc., Loan, 2.76%, 3/21/14  USD  730  $ 393,105 
Auto Components — 2.8%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14    1,930  1,647,680 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    874  668,955 
Delphi Corp. (c)(d):       
     Initial Tranche C Loan (Debtor in Possession),       
     10.50%, 12/31/09    908  499,164 
     Subsequent Tranche C Loan (Debtor in Possession),       
     9.50%, 12/31/09    93  50,836 
Intermet Corp.:       
     Letter of Credit, 0.16%, 11/09/10 (c)(d)    231  85,522 
     Synthetic Letter of Credit, 5.65%, 11/09/10 (e)    26  9,569 
     1st Lien Credit Facility, 5.65%, 11/08/10 (c)(d)(e)    115  22,978 
     1st Lien Credit Facility, 5.65%, 11/08/10 (e)    147  54,446 
      3,039,150 
Beverages — 0.2%       
Culligan International Co., Loan (Second Lien),       
 5.28%, 4/24/13  EUR  500  179,201 
Chemicals — 3.9%       
Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14  USD  444  451,874 
Edwards (Cayman Islands II) Ltd., Term Loan       
 (First Lien), 2.85%, 5/31/14    276  171,303 
Huish Detergents Inc., Tranche B Term Loan, 2.02%,       
 4/26/14    242  230,610 
Nalco Co., Term Loan B, 6.50%, 5/06/16    625  633,594 
PQ Corp. (fka Niagara Acquisition, Inc.):       
     Loan (Second Lien), 6.77%, 7/30/15    2,500  1,375,000 
     Term Loan (First Lien), 3.52% — 3.75%, 7/31/14    495  407,963 
Solutia Inc. Loan, 7.25%, 2/28/14    990  979,844 
      4,250,188 
Commercial Services & Supplies — 0.4%       
Casella Waste Systems, Term B Loan, 7.00%, 4/04/14    400  401,000 
Computers & Peripherals — 0.4%       
Intergraph Corp., Second Lien, Term Loan, 6.26% – 6.37%,       
 11/28/14    500  466,250 
Containers & Packaging — 0.8%       
Graham Packaging Co., LP, B Term Loan, 2.56%,       
 10/07/11    449  436,509 
Smurfit-Stone Container U.S. Term Loan Debtor in       
     Possession, 10.00%, 7/28/10    436  440,639 
      877,148 
Diversified Consumer Services — 1.4%       
Coinmach Corp., Term Loan, 3.28% – 3.43%, 11/14/14    1,728  1,468,860 
Diversified Telecommunication Services — 1.2%       
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14 (e)    1,518  921,245 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    324  318,003 
Paetec Holdings Corp., Incremental Term Loan, 2.76%,       
 2/28/13    84  79,507 
      1,318,755 
Electrical Equipment — 0.4%       
Generac Acquisition Corp., Term Loan (First Lien), 2.78%,       
 11/10/13    494  414,087 
Energy Equipment & Services — 1.3%       
Dresser, Inc., Term B Loan, 2.68%, 5/04/14    571  532,315 
MEG Energy Corp.:       
     Delayed Draw Term Loan, 2.60%, 4/02/13    493  457,990 
     Initial Term Loan, 2.60%, 4/03/13    484  449,283 
      1,439,588 

    Par   
Floating Rate Loan Interests    (000)           Value 
Food & Staples Retailing — 0.9%       
McJunkin Corp., Term Loan, 3.51%, 1/31/14  USD  499  $ 475,032 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15    500  517,500 
      992,532 
Food Products — 3.1%       
Dole Food Co., Inc. :       
     Credit-Linked Deposit, 0.51%, 4/12/13    86  86,864 
     Tranche B Term Loan, 8.00%, 4/12/13    151  151,845 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    562  565,788 
Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,       
 10/06/14    2,468  2,496,111 
      3,300,608 
Health Care Equipment & Supplies — 1.4%       
Biomet, Inc., Dollar Term Loan, 3.26% – 3.61%, 3/25/15  675  647,648 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.26%, 5/20/14    739  705,506 
Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13    142  136,067 
      1,489,221 
Health Care Providers & Services — 2.9%       
CCS Medical, Inc. (Chronic Care):       
     Loan (Debtor in Possession), 11.00%, 11/14/09    31  30,309 
     Term Loan (First Lien), 4.35%, 9/30/12 (c)(d)    525  236,906 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.51%, 7/25/14    30  27,947 
     Funded Term Loan, 2.51% – 2.62%, 7/25/14    585  544,964 
DaVita, Inc., Tranche B-1 Term Loan, 1.77% – 2.10%,       
 10/05/12    275  263,885 
Fresenius AG:       
     Tranche B-1 Term Loan, 6.75%, 7/06/14    120  120,441 
     Tranche B-2 Term Loan, 6.75%, 7/06/14    84  84,039 
HCA Inc.:       
     Tranche A-1 Term Loan, 2.10%, 11/17/12    1,597  1,491,174 
     Tranche B-1 Term Loan, 2.85%, 11/18/13    387  364,407 
      3,164,072 
Hotels, Restaurants & Leisure — 1.5%       
Golden Nugget, Inc., Second Lien Term Loan, 3.52%,       
 12/31/14    175  73,500 
Green Valley Ranch Gaming, LLC, Loan (Second Lien),       
 3.88%, 8/16/14    500  102,500 
Harrah’s Operating Co., Inc., Term B-2 Loan, 3.50%,       
 1/28/15    438  352,521 
Lake at Las Vegas Joint Venture/LLV-1, LLC.:       
     Revolving Loan Credit-Linked Deposit Account,       
     12.35%, 12/12/12    120  2,407 
     Term Loan, 14.35% – 15.00%, 12/22/12 (c)(d)    1,215  24,305 
QCE, LLC (Quiznos), Term Loan (Second Lien), 5.98%,       
 2/26/13    1,000  460,000 
VML US Finance LLC (aka Venetian Macau), Term B:       
     Delayed Draw Project Loan, 6.10%, 5/25/12    76  69,692 
     Funded Project Loan, 6.10%, 5/25/13    548  501,063 
      1,585,988 
Household Durables — 0.8%       
American Residential Services LLC, Term Loan       
 (Second Lien), 12.00%, 4/17/15 (e)    1,020  889,871 
IT Services — 3.3%       
Audio Visual Services Group Inc.:       
     Loan (Second Lien), 7.10%, 2/28/14    520  41,592 
     Tranche B Term Loan (First Lien), 2.85%, 2/28/14  750  465,000 
Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14    989  846,260 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 19

Schedule of Investments (continued)  BlackRock Diversified Income Strategies Fund, Inc. (DVF) 
  (Percentages shown are based on Net Assets) 

    Par   
Floating Rate Loan Interests    (000)           Value 
IT Services (concluded)       
First Data Corp.:       
     Initial Tranche B-2 Term Loan, 3.01% – 3.02%,       
     9/24/14  USD  2,134  $ 1,775,203 
     Initial Tranche B-3 Term Loan, 3.01% – 3.02%,       
     9/24/14    121  100,816 
SunGard Data Systems Inc. (Solar Capital Corp.), Tranche B     
 U.S. Term Loan, 3.95% – 4.09%, 2/28/16    325  313,181 
      3,542,052 
Independent Power Producers & Energy Traders — 1.3%       
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan, 3.78% – 3.79%,       
     10/10/14    1,102  837,669 
     Initial Tranche B-2 Term Loan, 3.78% – 3.79%,       
     10/10/14    734  558,139 
      1,395,808 
Industrial Conglomerates — 0.3%       
Sequa Corp., Term Loan, 3.65% – 3.88%, 12/03/14    397  338,590 
Insurance — 0.4%       
Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14    491  451,950 
Internet & Catalog Retail — 0.4%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14    472  467,344 
Life Sciences Tools & Services — 0.8%       
Life Technologies Corp., Term B Facility, 5.25%,       
 11/20/15    876  884,892 
Machinery — 2.6%       
Navistar International Corp.:       
     Revolving Credit-Linked Deposit, 3.35% – 3.36%,       
     1/19/12    800  744,000 
     Term Advance, 3.51%, 1/19/12    2,200  2,046,000 
      2,790,000 
Media — 16.7%       
Affinion Group Holdings, Inc., Loan, 8.27%, 3/01/10    1,205  1,054,198 
AlixPartners, LLP, Tranche C Term Loan, 2.28% – 2.51%,       
 10/12/13 (e)    506  492,195 
Cebridge Connections, Second Lien Term Loan, 4.79%,       
 5/05/14    2,000  1,802,500 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    1,000  960,000 
Cequel Communications, LLC, Tranche A Term Loan       
 (Second Lien), 2.27% – 4.25%, 11/05/13    789  745,163 
Charter Communications, Term Loan B1, 0%, 3/25/14 (c)(d)  1,515  1,514,242 
EB Sports Corp., Loan, 7.57%, 5/01/12 (e)    890  489,262 
Ellis Communications KDOC, LLC Loan, 10.00%, 12/30/11  1,939  543,006 
HMH Publishing Co. Ltd.:       
     Mezzanine, 17.50%, 11/14/14 (e)    6,221  933,183 
     Tranche A Term Loan, 5.26%, 6/12/14    1,536  1,188,521 
Insight Midwest Holdings, LLC, B Term Loan, 2.28%,       
 4/07/14    475  453,286 
Lamar Media Corp., Series E Incremental Loan, 5.50%,       
 3/15/13    247  244,715 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG)       
 Facility B1, 3.53%, 6/30/15  EUR  337  272,803 
Mediacom Illinois, LLC (fka Mediacom Communications,       
 LLC), Tranche D Term Loan, 4.50%, 3/31/17  USD  500  498,750 
Newsday, LLC, Fixed Rate Term Loan, 9.75%, 8/01/13    2,000  2,035,000 
Nielsen Finance LLC:       
     Class A Dollar Term Loan, 2.28%, 8/09/13    603  561,398 
     Class B Dollar Term Loan, 4.03%, 5/01/16    1,260  1,180,367 
Penton Media, Inc.:       
     Loan (Second Lien), 5.49%, 2/01/14    1,000  210,000 
     Term Loan (First Lien), 2.51% – 2.73%, 2/01/13    978  654,925 
Sunshine Acquisition Ltd. (aka HIT Entertainment) Term       
 Facility, 2.73%, 7/31/14    325  270,156 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    496  499,228 

  Par   
Floating Rate Loan Interests  (000)           Value 
Media (concluded)     
United Pan Europe Communications, Term Loan, 3.76%,     
 12/31/16  USD 1,000  $ 982,500 
Virgin Media Investment Holdings Ltd., C Facility, 3.62%,     
 7/17/13  GBP 145  207,726 
World Color Press Inc. and World Color (USA) Corp.     
 (fka Quebecor World Inc.), Advance, 9.00%, 6/30/12  200  198,500 
    17,991,624 
Metals & Mining — 1.6%     
Euramax International, Inc., Domestic Term Loan:     
     14.00%, 6/29/13 (e)  USD 626  269,062 
     (Cash Pay), 10.00%, 6/29/13  643  276,616 
RathGibson Inc., Loan (Debtor in Possession),     
 10.50% – 10.75%, 2/10/10  1,148  1,147,507 
    1,693,185 
Multi-Utilities — 0.6%     
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):     
     Synthetic Letter of Credit, 0.48%, 11/01/13  74  68,302 
     Term B Advance (First Lien), 3.13%, 11/01/13  576  530,104 
    598,406 
Multiline Retail — 0.2%     
Dollar General Corp., Tranche B-2 Term Loan, 3.01%,     
 7/07/14  250  240,243 
Oil, Gas & Consumable Fuels — 3.3%     
Big West Oil, LLC, Initial Advance Loan, 6.50%, 5/15/14  288  265,259 
ScorpionDrilling Limited, Loan (Second Lien), 8.10%,     
 5/08/14  1,650  1,369,500 
Turbo Beta Ltd. Dollar Facility, 14.50%, 3/15/18 (e)  1,738  1,216,786 
Vulcan Energy Corp. (fka Plains Resources Inc), Term B3     
 Loan, 5.50%, 8/12/11  750  739,688 
    3,591,233 
Paper & Forest Products — 0.8%     
Georgia-Pacific LLC, Term B Loan, 2.34% – 2.65%,     
 12/20/12  835  806,982 
Pharmaceuticals — 0.5%     
Warner Chilcott Co., Inc.:     
     Tranche B Acquisition Date Term Loan, 2.26%,     
     1/18/12  369  366,804 
     Tranche C Acquisition Date Term Loan, 2.26%,     
     1/18/12  130  128,641 
    495,445 
Software — 1.4%     
Aspect Software, Inc. Loan (Second Lien), 7.31%,     
 7/11/12  2,500  1,512,500 
Total Floating Rate Loan Interests — 58.0%    62,469,878 
  Beneficial   
Other Interests (i)  Interest   
Diversified Financial Services — 0.2%     
JG Wentworth LLC Preferred Equity Interests  USD 271  228,566 
Hotels, Restaurants & Leisure — 0.0%     
Buffets, Inc.  360,000  36 
Total Other Interests — 0.2%    228,602 
Preferred Stocks  Shares   
Capital Markets — 0.0%     
Marsico Parent Superholdco, LLC, 16.75% (b)  48  12,240 
Total Preferred Stocks — 0.0%    12,240 

See Notes to Financial Statements.

20 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

Warrants (j)    Shares    Value 
Hotels, Restaurants & Leisure — 0.0%         
Buffets Restaurants Holdings, Inc. (expires 4/29/14)    304  $ 3 
Other — 0.0%         
Turbo Cayman Ltd. (No Expiration)    1    — 
Total Warrants — 0.0%        3 
Total Long-Term Investments         
(Cost — $177,149,788) — 119.0%        128,167,846 
Short-Term Securities         
BlackRock Liquidity Funds, TempFund, 0.22% (k)(l)    2,371,578    2,371,578 
Total Short-Term Securities         
(Cost — $2,371,578) — 2.2%        2,371,578 
Options Purchased    Contracts     
Over-the-Counter Call Options         
Marsico Parent Superholdco LLC, expiring December         
 2019 at USD 942.86, Broker Goldman Sachs & Co.  13    13,000 
Total Options Purchased (Cost — $12,711) — 0.0%        13,000 
Total Investments (Cost — $179,534,077*) — 121.2%      130,552,424 
Liabilities in Excess of Other Assets — (21.2)%        (22,996,029) 
Net Assets — 100.0%      $107,556,395 
* The cost and unrealized appreciation (depreciation) of investments as of August 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost      $180,146,320 
       Gross unrealized appreciation      $ 3,424,595 
       Gross unrealized depreciation        (53,018,491) 
       Net unrealized depreciation      $ (49,593,896) 
(a) Variable rate security. Rate shown is as of report date.     
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. 
These securities may be resold in transactions exempt from registration to qualified 
       institutional investors.         
 (c) Non-income producing security.         
(d) Issuer filed for bankruptcy and/or is in default of interest payments.     
 (e) Represents a payment-in-kind security which may pay interest/dividends in addi- 
       tional par/shares.         
 (f) Convertible security.         
 (g) Represents a zero-coupon bond. Rate shown reflects the current yield as of report 
       date.         
(h) All, or a portion of security, pledged as collateral in connection with swaps. 
 (i) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
       zation entities and are non-income producing.         
 (j) Warrants entitle the Fund to purchase a predetermined number of shares of com- 
       mon stock and are non-income producing. The purchase price and number of 
shares are subject to adjustment under certain conditions until the expiration date. 
 (k) Investments in companies considered to be an affiliate of the Fund, for purposes of 
       Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
    Net     
       Affiliate    Activity    Income 
       BlackRock Liquidity Funds, TempFund  $ 2,371,578    $ 2,468 
       BlackRock Liquidity Series, LLC         
Cash Sweep Series  $(5,592,405)    $17,999 
 (l) Represents the current yield as of report date.         

•  For Fund compliance purposes, the Fund’s industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or ratings group indexes, and/or as defined by Fund management. 
  This definition may not apply for purposes of this report, which may combine 
  industry sub-classifications for reporting ease.       
•  Foreign currency exchange contracts as of August 31, 2009 were as follows: 
                          Unrealized 
  Currency      Currency          Settlement Appreciation 
  Purchased         Sold    Counterparty  Date (Depreciation) 
  USD 195,257 EUR  140,000    Citibank NA  9/15/09  $ (5,452) 
  USD 397,270 EUR  280,000    Citibank NA  9/16/09  (4,149) 
  USD 3,161,838  EUR   2,264,500  Deutsche Bank AG 9/16/09  (84,636) 
  USD  326,927  CAD  355,000  Barclays Bank Plc 10/28/09  2,622 
  GBP 165,000 USD  269,693    Citibank NA  10/28/09  (1,102) 
  Total                      $ (92,717) 
•  Interest rate swaps outstanding as of August 31, 2009 were as follows: 
                      Notional   
  Fixed  Floating              Amount  Unrealized 
  Rate   Rate    Counterparty Expiration   (000)    Depreciation 
  4.82% (m) 3-month    JPMorgan      January       
       LIBOR    Chase Bank NA      2013 USD 20,000  $(1,751,189) 
   (m) Pays fixed rate and receives floating rate.       
•  Credit default swaps on single-name issues — buy protection outstanding as of 
  August 31, 2009 were as follows:               
        Pay              Notional  Unrealized 
         Fixed              Amount Appreciation 
  Issuer     Rate    Counterparty  Expiration  (000) (Depreciation) 
  Host Hotel &        Goldman Sachs             
   Resorts LP   5.00%    Bank USA    March 2014  USD 1,275 $ (177,446) 
  Masco        JPMorgan               
   Corp.   5.30%  Chase Bank NA   March 2014 USD  500  (55,080) 
  Mohawk                       
   Industries,        JPMorgan               
   Inc.   4.45%  Chase Bank NA   March 2014 USD  500  (49,615) 
  Brunswick        Goldman Sachs September       
   Corp.   5.00%    Bank USA        2014  USD  100  561 
  Standard                       
   Pacific        Credit Suisse  September       
   Corp.   5.00%    International      2014  USD  270  10,739 
  Total                      $ (270,841) 
•  Credit default swaps on traded index — sold protection outstanding as of August 31, 
  2009 were as follows:                   
      Receive              Notional   
       Fixed    Counter-        Credit  Amount  Unrealized 
  Index   Rate    party Expiration Rating1  (000)2 Depreciation 
  Aces High  5.00%    Morgan  March    CCC  USD 6,736  $(2,024,770) 
   Yield Index        Stanley  2010           
             Capital               
          Services, Inc.               
•  Credit default swaps on single-name issues — sold protection outstanding as of 
  August 31, 2009 were as follows:               
      Receive              Notional   
       Fixed    Counter-        Credit  Amount  Unrealized 
  Issuer   Rate    party Expiration Rating3  (000)2 Depreciation 
  BAA    2.00%   Deutsche  March  A–  GBP  300  $ (96,206) 
   Ferrovial        Bank AG  2012           
   Junior Term                       
   Loan                       
   1  Using Standard & Poor’s weighted average ratings of the underlying securities 
    in the index.                     
   2  The maximum potential amount the Fund may pay should a negative credit 
    event take place under the terms of the agreement. See Note 2 of the Notes to 
    Financial Statements.               
   3  Using Standard & Poor’s rating of the issuer.       

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 21

Schedule of Investments (continued) BlackRock Diversified Income Strategies Fund, Inc. (DVF)

• Currency Abbreviations:
CAD Canadian Dollar
EUR Euro
GBP British Pound
USD US Dollar
• Effective September 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-
ments,” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical securities
• Level 2 — other observable inputs (including, but not limited to: quoted prices
for similar assets or liabilities in markets that are active, quoted prices for identi-
cal or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks
and default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of August 31, 2009 in 
determining the fair valuation of the Fund’s investments:   
Valuation    Investments in 
Inputs    Securities 
    Assets 
Level 1     
 Long-Term Investments:     
   Common Stocks    $ 2,283,119 
 Short-Term Securities    2,371,578 
Total Level 1    4,654,697 
Level 2     
 Long-Term Investments:     
   Common Stocks    503,215 
   Corporate Bonds    61,103,415 
   Floating Rate Loan Interests    36,916,830 
   Preferred Stocks    12,240 
Total Level 2    98,535,700 
Level 3     
 Long-Term Investments:     
   Asset-Backed Securities    528,255 
   Common Stocks    5,436 
   Corporate Bonds    1,033,683 
   Floating Rate Loan Interests    25,553,048 
   Other Interests    228,602 
   Warrants    3 
Total Level 3    27,349,027 
Total    $130,539,424 
Valuation  Other Financial 
Inputs  Instruments1 
  Assets  Liabilities 
Level 1  —  — 
Level 2  $ 26,922  $ (4,249,645) 
Level 3  38,010  — 
Total  $ 64,932  $ (4,249,645) 
 1 Other financial instruments are swaps, foreign currency exchange contracts, 
     options purchased and unfunded loan commitments. Swaps, foreign currency 
exchange contracts and unfunded loan commitments are valued at the unreal- 
     ized appreciation/depreciation on the instrument and options purchased are 
     shown at market value.     

See Notes to Financial Statements.

22 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (concluded) BlackRock Diversified Income Strategies Fund, Inc. (DVF)

The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:           
        Investments in Securities       
  Asset-Backed    Common  Corporate  Floating Rate  Other     
  Securities    Stocks  Bonds  Loan Interests  Interests  Warrants  Total 
Balance, as of August 31, 2008  —    —  —  $17,146,004    —  —  $17,146,004 
Accrued discounts/premiums  —    —  —  —    —  —  — 
Realized gain (loss)  —    —  —  (5,893,500)    —  —  (5,893,500) 
Change in unrealized appreciation1  $ 466,236  $ 5,033  $ (50,717)  2,373,735    —  —  2,794,287 
Net purchases (sales)  —    —  —  (10,472,926)    —  —  (10,472,926) 
Net transfers in/out of Level 3  62,019    403  1,084,400  22,399,735  $ 228,602  $ 3  23,775,162 
Balance as of August 31, 2009  $ 528,255  $ 5,436  $ 1,033,683  $25,553,048  $ 228,602  $ 3  $27,349,027 
1 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations.           
The following is a reconciliation of other financial instruments for unobservable inputs             
(Level 3) used in determining fair value:                   
  Other Financial               
  Instruments2                 
  Assets                 
Balance, as of August 31, 2008  —                 
Accrued discounts/premiums  —                 
Realized gain (loss)  —                 
Change in unrealized appreciation (depreciation)  —                 
Net purchases (sales)  —                 
Net transfers in/out of Level 3  $ 38,010                 
Balance as of August 31, 2009  $ 38,010                 
 2 Other financial instruments are unfunded loan commitments.                   

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 23

Schedule of Investments August 31, 2009 BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Common Stocks    Shares           Value 
Building Products — 0.6%       
Masonite Worldwide Holdings (a)    33,758  $ 1,365,511 
Chemicals — 0.0%       
GEO Specialty Chemicals, Inc. (a)    13,117  5,036 
Wellman Holdings, Inc.    430  107 
      5,143 
Electrical Equipment — 0.0%       
Medis Technologies Ltd. (a)    71,654  20,421 
Energy Equipment & Services — 0.3%       
Trico Marine Services, Inc. (a)  119,185  810,458 
Paper & Forest Products — 0.2%       
Ainsworth Lumber Co., Ltd. (a)  136,289  196,699 
Ainsworth Lumber Co., Ltd. (a)(b)  152,951  220,043 
Western Forest Products, Inc. (a)(b)    84,448  20,056 
      436,798 
Total Common Stocks — 1.1%      2,638,331 
    Par   
Corporate Bonds    (000)   
Auto Components — 1.9%       
The Goodyear Tire & Rubber Co., 5.01%, 12/01/09 (c)  USD  4,500  4,483,125 
Building Products — 2.0%       
CPG International I, Inc.:       
     7.87%, 7/01/12 (c)    3,500  2,502,500 
     10.50%, 7/01/13    2,300  1,644,500 
Momentive Performance Materials, Inc., Series WI,       
 9.75%, 12/01/14    750  487,500 
      4,634,500 
Capital Markets — 0.3%       
Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)    1,168  490,560 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(d)    486  116,671 
Marsico Parent Superholdco, LLC, 14.50%, 1/15/18 (b)(d)  335  86,990 
      694,221 
Chemicals — 0.6%       
GEO Specialty Chemicals, Inc.:       
     10.00%, 3/31/15    844  548,704 
     7.50%, 3/31/15 (b)(e)    852  553,506 
Wellman Holdings, Inc., Third Lien Subordinate Note,       
 5.00%, 1/29/19 (e)    442  220,823 
      1,323,033 
Commercial Services & Supplies — 0.3%       
Clean Harbors, Inc., 7.63%, 8/15/16 (b)    800  802,000 
Construction Materials — 1.0%       
Nortek, Inc., 10.00%, 12/01/13    2,540  2,362,200 
Containers & Packaging — 1.8%       
Clondalkin Acquisition BV, 2.63%, 12/15/13 (b)(c)    4,000  3,200,000 
Crown European Holdings SA, 6.25%, 9/01/11  EUR  15  21,504 
Owens Brockway Glass Container, Inc., 6.75%,       
 12/01/14    143  198,856 
Packaging Dynamics Finance Corp., 10.00%,       
 5/01/16 (b)  USD  2,350  752,000 
      4,172,360 
Diversified Financial Services — 2.2%       
FCE Bank Plc, 7.13%, 1/16/12  EUR  4,000  5,189,667 
Diversified Telecommunication Services — 1.8%       
PAETEC Holding Corp., 8.88%, 6/30/17 (b)  USD  1,150  1,095,375 
Qwest Corp., 3.88%, 6/15/13 (c)    3,500  3,237,500 
      4,332,875 

    Par   
Corporate Bonds    (000)  Value 
Food & Staples Retailing — 0.2%       
AmeriQual Group LLC, 9.50%, 4/01/12 (b)  USD  250  $ 162,500 
Duane Reade, Inc., 11.75%, 8/01/15 (b)    190  191,900 
      354,400 
Food Products — 0.4%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)    900  918,000 
Health Care Equipment & Supplies — 0.5%       
DJO Finance LLC, 10.88%, 11/15/14    1,320  1,267,200 
Hotels, Restaurants & Leisure — 2.4%       
American Real Estate Partners LP, 7.13%, 2/15/13    5,000  4,750,000 
Harrah’s Operating Co., Inc., 10.00%, 12/15/18 (b)    413  289,100 
Little Traverse Bay Bands of Odawa Indians, 10.25%,       
 2/15/14 (a)(b)(f)    1,565  688,600 
      5,727,700 
IT Services — 0.8%       
First Data Corp.:       
     9.88%, 9/24/15    1,020  872,100 
     11.25%, 3/31/16 (b)    1,190  910,350 
      1,782,450 
Independent Power Producers & Energy Traders — 1.4%     
Calpine Construction Finance Co., LP, 8.00%, 6/01/16 (b)  2,120  2,109,400 
Texas Competitive Electric Holdings Co., LLC, 10.25%,     
11/01/15    2,005  1,328,312 
      3,437,712 
Industrial Conglomerates — 0.5%       
Sequa Corp. (b):       
     11.75%, 12/01/15    640  403,200 
     13.50%, 12/01/15 (d)    1,700  888,231 
      1,291,431 
Machinery — 0.8%       
CPM Holdings, Inc., 10.63%, 9/01/14 (b)    500  505,000 
Sunstate Equipment Co., LLC, 10.50%, 4/01/13 (b)    2,000  1,500,000 
      2,005,000 
Media — 1.6%       
CSC Holdings, Inc.:       
     8.50%, 4/15/14 (b)    420  426,300 
     Series B, 7.63%, 4/01/11    2,000  2,025,000 
Cablevision Systems Corp. Series B, 8.00%, 4/15/12  975  996,937 
Local Insight Regatta Holdings, Inc., 11.00%, 12/01/17  1,244  472,720 
      3,920,957 
Metals & Mining — 0.4%       
FMG Finance Property Ltd., 4.36%, 9/01/11 (b)(c)    265  265,000 
Ryerson, Inc., 7.86%, 11/01/14 (c)    900  765,000 
      1,030,000 
Oil, Gas & Consumable Fuels — 0.6%       
SandRidge Energy, Inc., 4.22%, 4/01/14 (c)    1,600  1,328,589 
Paper & Forest Products — 2.3%       
Ainsworth Lumber Co., Ltd., 11.00%, 7/29/15 (b)(d)  1,176  466,135 
NewPage Corp.:       
     10.00%, 5/01/12    2,000  1,085,000 
     6.73%, 5/01/12 (c)    3,925  1,677,937 
Verso Paper Holdings LLC, Series B, 4.23%, 8/01/14 (c)  4,000  2,240,000 
      5,469,072 
Pharmaceuticals — 1.4%       
Angiotech Pharmaceuticals, Inc., 4.11%, 12/01/13 (c)  1,190  999,600 
Elan Finance Plc, 4.44%, 11/15/11 (c)    2,500  2,350,000 
      3,349,600 

See Notes to Financial Statements.

24 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Semiconductors & Semiconductor Equipment — 1.4%       
Avago Technologies Finance Pte. Ltd., 5.86%,       
 6/01/13 (c)  USD  900  $ 846,000 
Spansion, Inc., 3.79%, 6/01/13 (a)(b)(f)    2,870  2,547,125 
      3,393,125 
Specialty Retail — 0.1%       
General Nutrition Centers, Inc., 6.40%, 3/15/14 (c)    290  255,200 
Wireless Telecommunication Services — 1.8%       
Cricket Communications, Inc., 7.75%, 5/15/16 (b)    2,500  2,425,000 
Crown Castle International Corp., 9.00%, 1/15/15    255  265,200 
Digicel Group Ltd., 9.13%, 1/15/15 (b)(d)    278  244,987 
iPCS, Inc., 2.61%, 5/01/13 (c)    1,500  1,230,000 
      4,165,187 
Total Corporate Bonds — 28.5%      67,689,604 
Floating Rate Loan Interests       
Aerospace & Defense — 2.5%       
Avio SpA:       
     Dollar Mezzanine Term Loan, 4.26%, 12/13/16 (d)    2,123  955,402 
     Facility B2, 2.39%, 12/15/14    1,661  1,395,506 
     Facility C2, 3.01%, 12/14/15    1,771  1,487,671 
Hawker Beechcraft Acquisition Co., LLC:       
     Letter of Credit Facility Deposit, 2.28%, 3/26/14    137  102,306 
     Term Loan, 2.26% – 2.60%, 3/26/14    2,325  1,733,406 
IAP Worldwide Services, Inc., Term Loan (First-Lien),       
 7.25%, 12/30/12 (d)    175  126,292 
      5,800,583 
Airlines — 0.8%       
Delta Air Lines, Inc., Credit- Linked Deposit Loan,       
 0.11% – 2.28%, 4/30/12    1,225  1,093,823 
US Airways Group, Inc., Loan, 2.76%, 3/21/14    1,460  786,210 
      1,880,033 
Auto Components — 3.0%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14    4,825  4,119,199 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    1,551  1,187,394 
Delphi Corp. (a)(f):       
     Initial Tranche Term Loan C, 10.50%, 12/31/09    2,269  1,247,910 
     Subsequent Tranche Term Loan C, 9.50%, 12/31/09    231  127,090 
GPX International Tire Corp.:       
     Term Loan, 12.00%, 4/11/12 (d)    22  6,626 
     Tranche B Term Loan, 10.25%, 3/30/12 (a)(f)    1,280  384,097 
      7,072,316 
Beverages — 0.1%       
Culligan International Co., Loan (Second Lien), 5.28%,       
 4/24/13  EUR  500  179,201 
Building Products — 1.2%       
Building Materials Corp. of America, Term Loan Advance,       
 3.06%, 2/22/14  USD  1,968  1,795,500 
PGT Industries, Inc., Tranche A-2 Term Loan, 7.25%,       
 2/14/12    1,752  1,086,352 
      2,881,852 
Capital Markets — 0.6%       
RiskMetrics Group Holdings, LLC, Term B Loan (First Lien),     
 2.60%, 1/10/14    1,449  1,407,720 
Chemicals — 5.5%       
Ashland Inc., Term B Borrowing, 7.65%, 5/13/14    1,177  1,197,465 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.85%, 5/31/14    490  303,800 

    Par   
Floating Rate Loan Interests    (000)           Value 
Chemicals (concluded)       
Huish Detergents Inc., Tranche B Term Loan, 2.02%,       
 4/26/14  USD  1,470  $ 1,401,400 
Nalco Co., Term Loan, 6.50%, 5/06/16    2,450  2,483,688 
PQ Corp. (fka Niagara Acquisition, Inc.), Original Term       
 Loan (First Lien), 3.52% – 3.75%, 7/31/14    3,960  3,263,701 
Solutia Inc., Loan, 7.25%, 2/28/14    4,462  4,416,704 
      13,066,758 
Commercial Services & Supplies — 0.8%       
Casella Waste Systems, Inc., Term B Loan, 7.00%,       
 4/09/14    750  751,875 
John Maneely Co., Term Loan, 3.52% – 3.76%, 12/09/13    846  663,063 
West Corp., Term B-2 Loan, 2.64% – 2.65%, 10/24/13    533  505,807 
      1,920,745 
Computers & Peripherals — 0.4%       
Intergraph Corp.:       
     Initial Term Loan (First Lien), 2.37%, 5/29/14    419  401,943 
     Second Lien Term Loan, 6.26% – 6.37%, 11/28/14    500  466,250 
      868,193 
Construction Materials — 0.4%       
Headwaters Inc., Term Loan B1 (First Lien), 9.75%,       
 4/30/11    1,012  979,576 
Containers & Packaging — 1.8%       
Graham Packaging Co.:       
     B Term Loan, 2.56%, 10/07/11    109  105,644 
     Term Loan C, 6.75%, 4/27/14    1,087  1,084,386 
Graphic Packaging International, Inc., Incremental Term       
 Loan, 3.08% – 3.35%, 5/16/14    1,970  1,920,750 
Smurfit-Stone Container Enterprises, Inc., U.S. Term Loan       
 Debtor in Possession, 10.00%, 1/28/10    1,155  1,167,020 
      4,277,800 
Distributors — 0.3%       
Keystone Automotive Operations, Inc., Loan,       
 3.77% – 5.75%, 1/12/12    1,419  773,397 
Diversified Consumer Services — 1.0%       
Coinmach Service Corp., Term Loan, 3.28% – 3.43%,       
 11/14/14    2,715  2,308,208 
Diversified Telecommunication Services — 1.0%       
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    774  758,381 
PAETEC Holding Corp., Incremental Term Loan, 2.76%,       
 2/28/13    169  159,006 
Wind Finance SL SA Euro Facility (Second Lien), 7.70%,       
 12/17/14  EUR  1,000  1,437,910 
      2,355,297 
Electrical Equipment — 0.6%       
Baldor Electric Co., Term Loan, 5.25%, 1/31/14  USD  1,000  986,429 
Generac Acquisition Corp., Lien Term Loan (First Lien),       
 2.78%, 11/10/13    548  459,740 
      1,446,169 
Energy Equipment & Services — 1.2%       
Dresser, Inc., Term B Loan, 2.68%, 5/04/14    1,200  1,118,400 
MEG Energy Corp.:       
     Delayed Draw Term Loan, 2.60%, 4/02/13    986  915,980 
     Initial Term Loan, 2.60%, 4/03/13    968  898,566 
      2,932,946 
Food & Staples Retailing — 2.9%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.53%, 7/09/15  GBP  3,000  4,184,567 
DSW Holdings, Inc., Loan, 2.52%, 10/27/12  USD  919  827,500 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 25

Schedule of Investments (continued) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Floating Rate Loan Interests    (000)           Value 
Food & Staples Retailing (concluded)       
McJunkin Corp., Term Loan, 3.51%, 1/31/14  USD  499  $ 475,032 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15  1,000  1,035,000 
Wm. Bolthouse Farms, Inc., Term Loan (First Lien), 2.56%,     
 12/16/12    378  364,690 
      6,886,789 
Food Products — 3.2%       
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 0.51%, 4/12/13    390  392,601 
     Tranche B Term Loan, 8.00%, 4/12/13    682  686,302 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%, 4/12/13  2,541  2,557,222 
Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%, 10/06/14  3,925  3,968,817 
      7,604,942 
Health Care Equipment & Supplies — 1.4%       
Biomet, Inc., Dollar Term Loan, 3.26% – 3.61%, 3/25/15  2,250  2,158,828 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.26% – 3.60%, 5/20/14    985  940,675 
Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13    212  204,100 
      3,303,603 
Health Care Providers & Services — 6.7%       
CCS Medical, Inc. (Chronic Care):       
     Loan Debtor in Possession, 11.00%, 11/14/09    31  30,309 
     Term Loan (First Lien), 4.35%, 9/30/12 (a)(f)    750  338,437 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.51%, 7/25/14    221  206,215 
     Funded Term Loan, 2.51%, 7/25/14    4,319  4,024,123 
DaVita, Inc., Tranche B-1 Term Loan, 1.77% – 2.10%,       
 10/05/12    1,000  959,583 
Fresenius AG:       
     Term Loan B1, 6.75%, 7/06/14    1,478  1,485,952 
     Term Loan B2, 6.75%, 7/06/14    903  907,957 
HCA Inc.:       
     Tranche A-1 Term Loan, 2.10%, 11/17/12    3,512  3,278,934 
     Tranche B-1 Term Loan, 2.85%, 11/18/13    3,098  2,915,255 
Vanguard Health Holding Co., II, LLC (Vanguard Health     
System, Inc.), Replacement Term Loan, 2.51%, 9/23/11  1,769  1,721,591 
      15,868,356 
Hotels, Restaurants & Leisure — 2.7%       
Golden Nugget, Inc., Second Lien Term Loan, 3.52%,       
 12/31/14    250  105,000 
Green Valley Ranch Gaming, LLC, Second Lien Term Loan,     
 3.88%, 8/16/14    500  102,500 
Harrah’s Operating Co., Inc.:       
     Term B-1 Loan, 3.50%, 1/28/15    208  167,785 
     Term B-2 Loan, 3.50%, 1/28/15    2,450  1,974,117 
     Term B-3 Loan, 3.50% – 3.60%, 1/28/15    184  147,842 
Penn National Gaming, Inc., Term Loan B, 2.01 – 2.21%,     
 10/03/12    1,136  1,104,234 
QCE, LLC (Quiznos), Term Loan (Second Lien), 2.88%,     
 5/15/13    979  729,086 
Travelport LLC (fka Travelport Inc.):       
     Original Post-First Amendment and Restatement       
     Synthetic Letter of Credit Loan, 3.10%, 8/23/13    178  160,153 
     Tranche B Dollar Term Loan, 2.76% – 3.10%, 8/23/13  889  798,171 
VML US Finance LLC (aka Venetian Macau), Term B:       
     Delayed Draw Project Loan, 6.10%, 5/25/12    383  350,225 
     Funded Project Loan, 6.10%, 5/27/13    864  790,220 
      6,429,333 

    Par   
Floating Rate Loan Interests    (000)  Value 
Household Durables — 3.1%       
American Residential Services LLC, Term Loan (Second     
 Lien), 12.00%, 4/17/15 (d)  USD  2,040  $ 1,779,743 
Jarden Corp., Term Loan B3, 3.10%, 1/24/12    1,372  1,353,659 
Simmons Bedding Co., Tranche D Term Loan, 10.50%,     
 12/19/11    3,166  3,076,263 
Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14  1,184  1,098,083 
      7,307,748 
IT Services — 4.6%       
Audio Visual Services Group, Inc.:       
     Loan (Second Lien), 7.10%, 2/28/14 (c)    1,040  83,184 
     Tranche B Term Loan (First Lien), 2.85%, 2/28/14  1,000  620,000 
Ceridian Corp., U.S. Term Loan, 3.27%, 11/09/14    1,977  1,692,520 
First Data Corp. Initial:       
     Tranche B-1 Term Loan, 3.01% – 3.02%, 9/24/14  790  658,169 
     Tranche B-2 Term Loan, 3.01% – 3.02%, 9/24/14  4,629  3,852,089 
     Tranche B-3 Term Loan, 3.01% – 3.02%, 9/24/14  341  283,935 
RedPrairie Corp.:       
     Loan (Second Lien), 6.97%, 1/20/13    300  214,500 
     Term Loan B, 3.44% – 5.25%, 7/20/12    562  485,920 
SunGard Data Systems Inc.:       
     (Solar Capital Corp.) Additional Term Loan B, 6.75%,     
     2/28/14    900  894,696 
     Term Loan B, 3.95% – 4.09%, 2/28/16    2,261  2,182,782 
      10,967,795 
Independent Power Producers & Energy Traders — 1.7%     
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan, 3.78% – 3.79%,       
     10/10/14    2,529  1,921,710 
     Initial Tranche B-2 Term Loan, 3.78% – 3.79%,       
     10/10/14    978  742,929 
     Initial Tranche B-3 Term Loan, 3.78% – 3.79%,       
     10/10/14    1,945  1,472,063 
      4,136,702 
Industrial Conglomerates — 0.6%       
Sequa Corp., Term Loan, 3.65% – 3.88%, 12/03/14    1,519  1,294,833 
Insurance — 0.2%       
Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14    491  451,950 
Internet & Catalog Retail — 0.3%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/04/14  708  701,016 
Leisure Equipment & Products — 1.6%       
24 Hour Fitness Worldwide, Inc., Tranche B Term Loan,     
 2.77% – 3.08%, 6/08/12    3,870  3,366,900 
Fender Musical Instruments Corp.:       
     Delayed Draw Loan, 2.54%, 6/09/14    165  132,220 
     Initial Loan, 2.85%, 6/07/14    327  261,770 
      3,760,890 
Life Sciences Tools & Services — 1.1%       
Life Technologies Corp., Term B Facility, 5.25%, 11/20/15  2,529  2,554,120 
Machinery — 3.0%       
NACCO Materials Handling Group, Inc., Loan, 2.26% – 3.41%,     
 3/21/13    1,455  989,400 
Navistar Financial Corp. Tranche A Term loan, 2.31%,       
 3/27/10    1,492  1,447,461 
Navistar International Corp.:       
     Revolving Credit-Linked Deposit, 3.36% – 3.51%,     
     1/19/12    1,067  992,000 
     Term Advance, 3.51%, 1/19/12    2,933  2,728,000 
Oshkosh Truck Corp., Term B Loan, 6.60% – 6.64%,       
 12/06/13    1,032  1,026,883 
      7,183,744 

See Notes to Financial Statements.

26 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Floating Rate Loan Interests    (000)  Value 
Media — 23.8%       
Affinion Group Holdings, Inc., Loan, 8.27%,       
 3/01/10 (d)  USD  2,095  $ 1,833,388 
AlixPartners, LLP, Tranche C Term Loan, 2.28% – 2.51%,       
 10/12/13    1,590  1,546,900 
Bresnan Communications, LLC, Additional Term Loan B       
 (First Lien), 2.51% – 2.61%, 6/30/13    946  906,626 
Catalina Marketing Corp., Initial Term Loan, 3.03%,       
 10/01/14    1,523  1,431,695 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    4,200  4,032,000 
Cequel Communications, LLC:       
     Term Loan, 2.27% – 4.25%, 11/05/13    2,110  1,993,002 
     Tranche A Term Loan (Second Lien), 4.79%, 5/05/14  2,000  1,802,500 
Charter Communications, Term Loan B1, 7.94%, 3/25/14  3,465  3,463,267 
HMH Publishing Co., Ltd. (fka Education Media):       
     Mezzanine, 17.50%, 11/14/14 (d)    10,180  1,527,027 
     Tranche A Term Loan, 5.26%, 6/12/14    2,633  2,037,464 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.52% – 2.54%, 3/08/14    1,478  623,013 
Harland Clarke Holdings Corp. (fka Clarke American Corp.),     
 Tranche B Term Loan, 2.76%, 6/30/14    980  800,538 
Insight Midwest Holdings, LLC, B Term Loan, 2.28%,       
 4/07/14    1,825  1,741,572 
Intelsat Subsidiary Holding Co., Ltd., Tranche B Term Loan,     
 2.78%, 7/13/13    1,896  1,808,521 
Knology, Inc., Term Loan, 2.51%, 6/30/12    724  687,989 
Lamar Advertising Co.:       
     Term Loan Incremental, 5.50%, 9/28/12    207  204,055 
     Term Loan Incremental, 5.50%, 9/28/13    1,233  1,214,611 
     Term Loan E, 5.50%, 9/30/12    494  489,430 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.53%, 3/06/15  EUR  337  272,803 
     Facility C1, 3.78%, 3/04/16    337  272,803 
MCC Iowa LLC (Mediacom Broadband Group), Tranche A       
 Term Loan, 1.76%, 3/31/10  USD  544  535,594 
MCNA Cable Holdings LLC (OneLink Communications),       
 Loan (PIK facility), 8.31%, 3/01/13 (d)    1,236  469,840 
Mediacom Broadband (Term Loan E), 6.50%, 11/30/15    2,868  2,871,343 
Mediannuaire Holding (Pages Jaunes), Term Loan D,       
 4.77%, 4/08/16  EUR  500  188,758 
Metro-Goldwyn-Mayer Inc., Tranche B Term Loan, 3.51%,       
 4/09/12  USD  3,297  1,833,743 
Multicultural Radio Broadcasting, Inc., Term Loan, 3.03%,       
 12/18/12    317  221,900 
NTL Cable Plc, Second Lien, 3.62% – 4.19%,       
 7/17/13  GBP  845  1,210,543 
Newsday, LLC, Fixed Rate Term Loan, 9.75%, 8/01/13  USD  1,000  1,017,500 
NextMedia Operating, Inc.:       
     Delay Draw Term Loan, 8.25%, 11/15/12    200  129,869 
     Initial Term Loan (First Lien), 8.25%, 11/15/12    266  173,060 
     Term Loan (Second Lien), 11.25%, 11/15/13    1,772  212,674 
Nielsen Finance LLC:       
     Class A Dollar Term Loan, 2.28%, 8/09/13    1,809  1,684,193 
     Class B Dollar Term Loan, 4.03%, 5/01/16    3,778  3,541,100 
Penton Media, Inc., Loan (Second Lien), 5.49%, 2/01/14  1,000  210,000 
Sunshine Acquisition Ltd. (aka HIT Entertainment), Term       
 Facility, 2.73%, 6/01/12    1,757  1,460,534 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    2,739  2,755,786 
UPC Financing Partnership, Facility U,4.54%, 12/31/17  EUR  5,000  6,540,844 
Virgin Media NTL, Term Loan, 4.40%, 6/03/12  GBP  1,000  1,513,178 
World Color Press Inc. and World Color (USA) Corp. (fka       
 Quebecor World Inc.), Term Loan, 9.00%, 6/30/12  USD  1,300  1,290,250 
      56,549,913 

    Par   
Floating Rate Loan Interests    (000)  Value 
Multi-Utilities — 0.9%       
Energy Transfer Equity, LP, Term Loan, 2.21%, 11/01/12  USD  1,000  $ 968,571 
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     First Lien Term Loan B, 3.13%, 11/01/13    664  611,659 
     Second Lien Term Loan, 5.13%, 5/01/14    500  386,250 
     Synthetic Letter of Credit, 0.48%, 11/01/13    86  78,810 
      2,045,290 
Multiline Retail — 0.8%       
Dollar General Corp., Tranche B-2 Term Loan, 3.01%,       
 7/07/14    1,975  1,897,920 
Oil, Gas & Consumable Fuels — 1.8%       
Big West Oil, LLC (a)(f):       
     Delayed Advance Loan, 4.50%, 5/15/14    577  530,935 
     Initial Advance Loan, 4.50%, 5/15/14    588  541,363 
Coffeyville Resources, LLC:       
     Funded Letter of Credit, 6.50%, 12/28/10    194  190,216 
     Tranche D Term Loan, 8.50%, 12/30/13    1,559  1,523,964 
Vulcan Energy Corp. (fka Plains Resources Inc.), Term B3       
 Loan, 5.50%, 8/12/11    1,500  1,479,375 
      4,265,853 
Paper & Forest Products — 2.5%       
Georgia-Pacific LLC, Term B Loan, 2.34% – 2.65%,       
 12/20/12    4,297  4,151,381 
NewPage Corp., Term Loan, 4.06%, 12/22/14    1,619  1,499,075 
Verso Paper Finance Holdings LLC, Loan, 6.73%,       
 2/01/13 (d)    1,983  396,576 
      6,047,032 
Pharmaceuticals — 0.9%       
Catalent Pharma Solutions, Inc. (fka Cardinal Health       
409, Inc.), Euro Term Loan, 2.74%, 4/15/14  EUR  980  1,173,123 
Warner Chilcott Co., Inc.:       
     Tranche B Acquisition Date Term Loan,       
     2.26%, 1/18/12  USD  738  733,608 
     Tranche C Acquisition Date Term Loan,       
     2.26%, 1/18/12    259  257,283 
      2,164,014 
Real Estate Management & Development — 1.0%       
Mattamy Funding Partnership, Loan, 2.63%, 4/11/13    968  774,000 
Realogy Corp., Initial Term B Loan, 3.28%, 10/10/13    1,960  1,493,800 
      2,267,800 
Specialty Retail — 0.4%       
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan, 2.52%,     
 10/20/13    1,000  938,333 
Wireless Telecommunication Services — 0.9%       
Digicel International Finance Ltd., Tranche A, 3.13%,       
 3/01/12    1,250  1,187,500 
Ntelos Inc., Term Loan B Advance, 5.75%, 7/31/15    1,000  997,500 
      2,185,000 
Total Floating Rate Loan Interests — 87.3%      206,963,770 
  Beneficial   
  Interest   
Other Interests (g)    (000)   
Diversified Financial Services — 0.1%       
J.G. Wentworth LLC Preferred Equity Interests  USD  —(h)  262,849 
Total Other Interests — 0.1%      262,849 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 27

Schedule of Investments (continued) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

Preferred Stocks  Shares  Value 
Capital Markets — 0.0%     
Marsico Parent Superholdco, LLC, 16.75% (b)  78  $ 19,890 
Total Preferred Stocks — 0.0%    19,890 
Total Long-Term Investments     
(Cost — $330,781,619) — 117.0%    277,574,444 
Short-Term Securities     
BlackRock Liquidity Funds, TempFund, 0.22% (i)(j)  2,018,379  2,018,379 
Total Short-Term Securities     
(Cost — $2,018,379) — 0.9%    2,018,379 
Options Purchased  Contracts   
Over-the-Counter Call Options     
Marsico Parent Superholdco LLC, expiring December 2019   
 at USD 942.86, Broker Goldman Sachs & Co.  20  20,000 
Total Options Purchased (Cost — $19,556) — 0.0%    20,000 
Total Investments (Cost — $332,819,554*) — 117.9%  279,612,823 
Liabilities in Excess of Other Assets — (17.9)%    (42,453,259) 
Net Assets — 100.0%    $237,159,564 
* The cost and unrealized appreciation (depreciation) of investments as of August 31, 
       2009, as computed for federal income tax purposes, were as follows: 
       Aggregate cost    $333,081,083 
       Gross unrealized appreciation    $ 6,045,238 
       Gross unrealized depreciation    (59,513,498) 
       Net unrealized depreciation    $ (53,468,260) 
(a) Non-income producing security.     
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. 
       These securities may be resold in transactions exempt from registration to qualified 
       institutional investors.     
 (c) Variable rate security. Rate shown is as of report date.   
(d) Represents a payment-in-kind security which may pay interest/dividends in addi- 
       tional par/shares.     
 (e) Convertible security.     
 (f) Issuer filed for bankruptcy and/or is in default of interest payments.   
(g) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
       zation entities and are non-income producing.     
(h) Amount is less than $1,000.     
(i) Investments in companies considered to be an affiliate of the Fund, for purposes of 
       Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
  Net   
       Affiliate  Activity  Income 
       BlackRock Liquidity Funds, TempFund  $ 2,018,379  $ 5,993 
       BlackRock Liquidity Series, LLC     
Cash Sweep Series  $(1,634,669)  $26,105 
 (j) Represents the current yield as of report date.     
 • For Fund compliance purposes, the Fund’s industry classifications refer to any one 
       or more of the industry sub-classifications used by one or more widely recognized 
       market indexes or ratings group indexes, and/or as defined by Fund management. 
       This definition may not apply for purposes of this report which may combine industry 
       sub-classifications for reporting ease.     

•  Foreign currency exchange contracts as of August 31, 2009 were as follows: 
                  Unrealized 
  Currency    Currency      Settlement Appreciation 
  Purchased    Sold  Counterparty  Date (Depreciation) 
  USD 439,329 EUR  315,000  Citibank NA   9/15/09 $  (12,267) 
  USD14,031,553 EUR 10,059,000  Citibank NA   9/16/09  (389,413) 
              Royal Bank     
  USD 703,165 EUR  494,000  of Scotland Plc   9/16/09  (5,053) 
  USD 290,090 CAD  315,000 Barclays Bank Plc 10/28/09  2,327 
  USD 6,118,751 GBP 3,743,500  Citibank NA  10/28/09  25,014 
  Total            $ (379,392) 
•  Credit default swaps on single-name issues — buy protection outstanding as of 
  August 31, 2009 were as follows:         
          Pay         Notional   
          Fixed        Amount Unrealized 
  Issuer    Rate  Counterparty  Expiration  (000) Depreciation 
  First Data    JPMorgan Chase       
   Corp.    5.00%  Bank, NA  12/20/13  USD 3,000 $  (230,284) 
  Host Hotels &    Goldman Sachs       
   Resorts LP  5.00%  Bank USA  3/20/14  USD 2,500  (347,933) 
  Masco Corp.    JPMorgan Chase       
          5.30%  Bank, NA  3/20/14  USD 1,000  (110,160) 
  Mohawk      JPMorgan Chase       
   Industries,  4.45%  Bank, NA  3/20/14  USD 1,000  (99,231) 
   Inc.               
  Total            $ (787,608) 
•  Credit default swaps on single-name issues — sold protection outstanding as of 
  August 31, 2009 were as follows:         
        Receive         Notional   
          Fixed  Counter-    Credit  Amount Unrealized 
  Issuer    Rate  party Expiration Ratings1 (000)2 Depreciation 
  Ford Motor             
   Co.    3.80%   UBS AG 3/20/10  CCC USD 10,000 $  (321,270) 
   1    Using Standard & Poor’s rating of the issuer.     
   2    The maximum potential amount the Fund may pay should a negative credit 
      event take place as defined under the terms of the agreement. See Note 2 of 
      the Notes to Financial Statements.         
•  Currency Abbreviations:           
  CAD    Canadian Dollar         
  EUR    Euro             
  GBP    British Pound           
  USD    US Dollar           
•  Effective September 1, 2008, Financial Accounting Standards Board Statement of 
  Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). 
  FAS 157 clarifies the definition of fair value, establishes a framework for measuring 
  fair values and requires additional disclosures about the use of fair value measure- 
  ments. Various inputs are used in determining the fair value of investments, which 
  are as follows:             
  • Level 1 — price quotations in active markets/exchanges for identical securities 
  • Level 2 — other observable inputs (including, but not limited to: quoted prices for 
    similar assets or liabilities in markets that are active, quoted prices for identical 
    or similar assets or liabilities in markets that are not active, inputs other than 
    quoted prices that are observable for the assets or liabilities (such as interest 
    rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks 
    and default rates) or other market-corroborated inputs)   
  • Level 3 — unobservable inputs based on the best information available in the 
    circumstances, to the extent observable inputs are not available (including the 
    Fund’s own assumptions used in determining the fair value of investments) 
  The inputs or methodology used for valuing securities are not necessarily an indica- 
  tion of the risk associated with investing in those securities. For information about 
  the Fund’s policy regarding valuation of investments and other significant accounting 
  policies, please refer to Note 1 of the Notes to Financial Statements.   

See Notes to Financial Statements.

28 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (concluded) BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

The following table summarizes the inputs used as of August 31, 2009 in determin-  Valuation        Other Financial 
ing the fair valuation of the Fund’s investments:    Inputs        Instruments1 
Valuation  Investments in          Assets  Liabilities 
Inputs  Securities  Level 1        —  — 
  Assets  Level 2    $ 47,341  $ (1,515,611) 
    Level 3        —  (49,905) 
Level 1                 
 Long-Term Investments:    Total    $ 47,341  $ (1,565,516) 
   Common Stocks  $ 2,413,145               
    1  Other financial instruments are swaps, options purchased, foreign currency 
 Short-Term Securities  2,018,379               
      exchange contracts and unfunded loan commitments. Swaps, foreign currency 
Total Level 1  4,431,524    exchange contracts and unfunded loan commitments are valued at the unreal- 
Level 2      ized appreciation/depreciation on the instrument and options purchased are 
 Long-Term Investments:      shown at market value.         
   Common Stocks  220,043               
   Corporate Bonds  64,866,572               
   Floating Rate Loan Interests  152,389,930               
   Preferred Stocks  19,890               
Total Level 2  217,496,435               
Level 3                 
 Long-Term Investments:                 
   Common Stocks  5,143               
   Corporate Bonds  2,823,032               
   Floating Rate Loan Interests  54,573,840               
   Other Interests  262,849               
Total Level 3  57,664,864               
Total  $279,592,823               
The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:           
        Investments in Securities     
      Common  Corporate  Floating Rate  Other   
      Stocks  Bonds  Loan Interests  Interests  Total 
Balance, as of August 31, 2008    $ 5,036  —  $27,972,884    —  $27,977,920 
Accrued discounts/premiums      —  —  —    —  — 
Realized gain (loss)      —  —  (6,318,545)    —  (6,318,545) 
Change in unrealized appreciation (depreciation)2      —  $ (140,889)  (2,598,443)    —  (2,739,332) 
Net purchases (sales)      —  —  (17,770,999)    —  (17,770,999) 
Net transfers in/out of Level 3      107  2,963,921  53,288,943  $ 262,849  56,515,820 
Balance, as of August 31, 2009    $ 5,143  $ 2,823,032  $54,573,840  $ 262,849  $57,664,864 
 2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations.           
The following is a reconciliation of other financial instruments for unobservable               
inputs (Level 3) used in determining fair value:                 
  Other Financial               
  Instruments3               
  Liabilities               
Balance, as of August 31, 2008  —               
Accrued discounts/premiums  —               
Realized gain (loss)  —               
Change in unrealized appreciation (depreciation)  —               
Net purchases (sales)  —               
Net transfers in/out of Level 3  $ (49,905)               
Balance as of August 31, 2009  $ (49,905)               
 3 Other financial instruments are unfunded loan commitments.                 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 29

Schedule of Investments August 31, 2009 BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

    Par   
Asset-Backed Securities    (000)  Value 
Ford Credit Auto Owner Trust Series 2009-A Class A3B,       
2.77%, 5/15/13 (a)  USD  9,135  $ 9,373,195 
Interest Only — 0.5%       
Sterling Bank Trust Series 2004-2 Class Note, 2.08%,       
 3/30/30    18,549  1,431,764 
Sterling Coofs Trust Series 1, 2.36%, 4/15/29    14,819  1,236,448 
      2,668,212 
Total Asset-Backed Securities — 2.2%      12,041,407 
Common Stocks    Shares   
Commercial Services & Supplies — 0.0%       
Sirva (b)    1,109  5,545 
Construction & Engineering — 0.0%       
USI United Subcontractors (b)    6,111  79,444 
Metals & Mining — 0.0%       
Euramax International (b)    234  2,512 
Total Common Stocks — 0.0%      87,501 
    Par   
Corporate Bonds    (000)   
Air Freight & Logistics — 0.1%       
Park-Ohio Industries, Inc., 8.38%, 11/15/14  USD  905  571,281 
Airlines — 0.1%       
American Airlines Pass Through Trust Series 1999-1,       
 7.32%, 4/15/11    520  512,200 
Auto Components — 0.1%       
Lear Corp., 8.75%, 12/01/16 (a)(b)(c)    525  283,500 
Automobiles — 0.1%       
Ford Capital BV, 9.50%, 6/01/10    500  495,000 
Building Products — 0.1%       
CPG International I, Inc., 10.50%, 7/01/13    750  536,250 
Capital Markets — 0.4%       
E*Trade Financial Corp. (d):       
     3.99%, 8/31/19 (e)    249  425,479 
     12.50%, 11/30/17 (f)    78  78,975 
Marsico Parent Co., LLC, 10.62%, 1/15/16    2,651  1,113,420 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (d)(f)    1,105  265,135 
Marsico Parent Superholdco, LLC, 14.50%, 1/15/18 (d)(f)  759  197,440 
      2,080,449 
Chemicals — 0.9%       
American Pacific Corp., 9.00%, 2/01/15    1,100  992,750 
Ames True Temper, Inc., 4.51%, 1/15/12 (a)    2,085  1,834,800 
Innophos, Inc., 8.88%, 8/15/14    2,225  2,158,250 
Terra Capital, Inc., Series B, 7.00%, 2/01/17    15  14,137 
      4,999,937 
Commercial Services & Supplies — 0.8%       
DI Finance, Series B, 9.50%, 2/15/13    2,326  2,357,983 
Waste Services, Inc., 9.50%, 4/15/14    2,065  2,044,350 
      4,402,333 
Consumer Finance — 0.8%       
Ford Motor Credit Co. LLC:       
     7.38%, 2/01/11    2,800  2,706,791 
     3.26%, 1/13/12 (a)    565  470,363 
     7.80%, 6/01/12    1,665  1,540,202 
      4,717,356 

    Par   
Corporate Bonds    (000)  Value 
Containers & Packaging — 0.9%       
Berry Plastics Holding Corp.:       
     4.50%, 9/15/14 (a)  USD  510  $ 367,200 
     8.88%, 9/15/14    465  409,200 
Crown Americas LLC, 7.75%, 11/15/15    885  876,150 
Impress Holdings BV, 3.63%, 9/15/13 (a)(d)    1,370  1,251,837 
Pregis Corp., 12.38%, 10/15/13    2,020  1,818,000 
      4,722,387 
Diversified Financial Services — 0.4%       
GMAC LLC, 6.88%, 8/28/12 (d)    1,731  1,505,970 
Structured Asset Repackaged Trust, 1.00%, 1/21/10    1,082  1,049,539 
      2,555,509 
Diversified Telecommunication Services — 3.8%       
Cincinnati Bell, Inc., 7.25%, 7/15/13    1,330  1,290,100 
Deutsche Telekom International Finance BV, 8.50%,       
 6/15/10    5,000  5,258,820 
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (d)  3,850  3,907,750 
PAETEC Holding Corp., 8.88%, 6/30/17 (d)    1,000  952,500 
Qwest Communications International, Inc.:       
     Series B, 7.50%, 2/15/14    2,985  2,880,525 
     7.50%, 2/15/14    610  588,650 
Qwest Corp., 3.88%, 6/15/13 (a)    3,000  2,775,000 
Wind Acquisition Finance SA, 10.75%, 12/01/15 (d)  900  967,500 
Windstream Corp.:       
     8.13%, 8/01/13    1,480  1,480,000 
     8.63%, 8/01/16    990  993,712 
      21,094,557 
Electric Utilities — 0.0%       
Elwood Energy LLC, 8.16%, 7/05/26    138  120,438 
Electronic Equipment, Instruments & Components — 0.1%     
Sanmina-SCI Corp., 8.13%, 3/01/16    600  517,500 
Energy Equipment & Services — 0.1%       
Compagnie Generale de Geophysique-Veritas:       
     7.50%, 5/15/15    255  242,250 
     7.75%, 5/15/17    420  396,900 
North American Energy Partners, Inc., 8.75%, 12/01/11  140  128,800 
      767,950 
Food & Staples Retailing — 0.1%       
Duane Reade, Inc., 11.75%, 8/01/15 (d)    455  459,550 
Food Products — 0.3%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (d)    1,810  1,846,200 
Health Care Equipment & Supplies — 0.8%       
Biomet, Inc., 10.00%, 10/15/17    500  525,000 
DJO Finance LLC, 10.88%, 11/15/14    3,830  3,676,800 
      4,201,800 
Health Care Providers & Services — 0.8%       
Tenet Healthcare Corp. (d):       
     9.00%, 5/01/15    812  832,300 
     10.00%, 5/01/18    332  357,730 
Viant Holdings, Inc., 10.13%, 7/15/17 (d)    2,948  2,771,120 
      3,961,150 
Hotels, Restaurants & Leisure — 1.7%       
American Real Estate Partners LP:       
     8.13%, 6/01/12    5,860  5,772,100 
     7.13%, 2/15/13    1,480  1,406,000 
Greektown Holdings, LLC, 10.75%, 12/01/13 (b)(c)(d)  1,344  288,960 
Harrah’s Operating Co., Inc. (d):       
     10.00%, 12/15/15    720  514,800 
     10.00%, 12/15/18    1,881  1,316,700 
Tropicana Entertainment LLC Series WI, 9.63%,       
 12/15/14 (b)(c)    375  234 
      9,298,794 

See Notes to Financial Statements.

30 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Household Durables — 0.0%     
Berkline/Benchcraft, LLC, 4.50%, 11/03/12 (d)(e)(f) USD  200  $ — 
IT Services — 0.4%     
iPayment, Inc., 9.75%, 5/15/14  950  612,750 
iPayment Investors LP, 12.75%, 7/15/14 (d)(f)  4,759  1,189,702 
SunGard Data Systems, Inc., 4.88%, 1/15/14  215  193,500 
    1,995,952 
Independent Power Producers & Energy Traders — 0.8%     
The AES Corp., 8.75%, 5/15/13 (d)  2,803  2,845,045 
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (d)  1,250  1,243,750 
NRG Energy, Inc.:     
     7.25%, 2/01/14  210  204,225 
     7.38%, 2/01/16  475  454,219 
    4,747,239 
Industrial Conglomerates — 0.9%     
Sequa Corp. (d):     
     11.75%, 12/01/15  3,210  2,022,300 
     13.50%, 12/01/15 (f)  5,678  2,966,940 
    4,989,240 
Machinery — 0.7%     
AGY Holding Corp., 11.00%, 11/15/14  1,700  1,343,000 
Accuride Corp., 8.50%, 2/01/15 (b)(c)  850  170,000 
Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (d)  3,125  2,343,750 
Synventive Molding Solutions, Sub-Series A, 14.00%, 1/14/11  720  287,888 
    4,144,638 
Marine — 0.1%     
Navios Maritime Holdings, Inc., 9.50%, 12/15/14  676  591,500 
Media — 3.7%     
Affinion Group, Inc., 10.13%, 10/15/13  2,825  2,807,344 
CMP Susquehanna Corp., 4.75%, 5/15/14 (d)  194  3,880 
Charter Communications Holdings II, LLC (b)(c):     
     10.25%, 9/15/10  1,155  1,283,494 
     Series B, 10.25%, 9/15/10  765  850,106 
Charter Communications, Inc., 6.50%, 10/01/27 (b)(c)(e)  1,280  550,400 
EchoStar DBS Corp.,:     
     7.00%, 10/01/13  200  196,000 
     7.13%, 2/01/16  200  192,000 
Local Insight Regatta Holdings, Inc., 11.00%, 12/01/17  1,575  598,500 
Network Communications, Inc., 10.75%, 12/01/13  1,520  307,800 
Nielsen Finance LLC, 10.00%, 8/01/14  3,695  3,491,775 
ProtoStar I Ltd., 18.00%, 10/15/12 (b)(c)(d)(e)  3,454  1,381,644 
Rainbow National Services LLC (d):     
     10.38%, 9/01/14  3,134  3,275,030 
     8.75%, 9/01/12  925  934,250 
TL Acquisitions, Inc., 10.50%, 1/15/15 (d)  4,965  4,518,150 
    20,390,373 
Metals & Mining — 0.2%     
Freeport-McMoRan Copper & Gold, Inc., 8.38%, 4/01/17  1,225  1,277,063 
Oil, Gas & Consumable Fuels — 1.5%     
Berry Petroleum Co., 8.25%, 11/01/16  550  489,500 
Chesapeake Energy Corp., 6.38%, 6/15/15  650  592,313 
EXCO Resources, Inc., 7.25%, 1/15/11  495  485,100 
Encore Acquisition Co., 6.00%, 7/15/15  250  215,000 
OPTI Canada, Inc., 8.25%, 12/15/14  1,805  1,173,250 
Overseas Shipholding Group, Inc., 8.75%, 12/01/13  1,190  1,148,350 
Sabine Pass LNG LP, 7.50%, 11/30/16  1,515  1,227,150 
SandRidge Energy, Inc.:     
     4.22%, 4/01/14 (a)  1,500  1,245,552 
     8.63%, 4/01/15 (f)  180  169,200 
Whiting Petroleum Corp.:     
     7.25%, 5/01/12  75  74,625 
     7.25%, 5/01/13  1,390  1,376,100 
    8,196,140 

    Par   
Corporate Bonds    (000)  Value 
Paper & Forest Products — 0.2%       
Domtar Corp., 7.88%, 10/15/11  USD  10  $ 10,263 
NewPage Corp.:       
     6.73%, 5/01/12 (a)    1,500  641,250 
     10.00%, 5/01/12    635  344,487 
      996,000 
Professional Services — 0.1%       
FTI Consulting, Inc., 7.75%, 10/01/16    350  341,250 
Real Estate Investment Trusts (REITs) — 0.2%       
Rouse Co. LP, 5.38%, 11/26/13 (b)(c)    1,640  1,238,200 
Software — 0.0%       
BMS Holdings, Inc., 8.35%, 2/15/12 (a)(d)(f)    568  9,122 
Specialty Retail — 1.9%       
General Nutrition Centers, Inc.:       
     6.40%, 3/15/14 (a)    2,250  1,980,000 
     10.75%, 3/15/15    1,700  1,606,500 
Group 1 Automotive, Inc., 8.25%, 8/15/13    5,000  4,512,500 
Lazydays RV Center, Inc., 11.75%, 5/15/12 (b)(c)    1,454  14,540 
Sonic Automotive, Inc., Series B, 8.63%, 8/15/13    3,135  2,649,075 
      10,762,615 
Textiles, Apparel & Luxury Goods — 0.7%       
Levi Strauss & Co., 8.63%, 4/01/13    2,400  3,285,833 
Quiksilver, Inc., 6.88%, 4/15/15    575  365,125 
      3,650,958 
Tobacco — 0.2%       
Reynolds American, Inc., 7.63%, 6/01/16    1,000  1,055,033 
Wireless Telecommunication Services — 1.1%       
Cricket Communications, Inc.:       
     7.75%, 5/15/16 (d)    2,250  2,182,500 
     9.38%, 11/01/14    270  254,475 
Digicel Group Ltd. (d):       
     8.88%, 1/15/15    1,120  999,600 
     9.13%, 1/15/15 (e)    2,467  2,174,044 
MetroPCS Wireless, Inc., 9.25%, 11/01/14    270  264,937 
      5,875,556 
Total Corporate Bonds — 25.1%      138,405,020 
Floating Rate Loan Interests       
Aerospace & Defense — 0.7%       
Avio SpA:       
     Facility B2, 2.39%, 12/15/14    995  836,162 
     Facility C2, 3.01%, 12/14/15    1,000  840,000 
Hawker Beechcraft Acquisition Co. LLC:       
     Letter of Credit Facility Deposit, 2.28%, 3/26/14    156  115,998 
     Term Loan, 2.26% – 2.60%, 3/26/14    2,637  1,965,395 
IAP Worldwide Services, Inc. Term Loan (First-Lien),       
7.25%, 12/30/12    150  108,249 
      3,865,804 
Airlines — 0.2%       
US Airways Group, Inc., Loan, 2.76%, 3/21/14    2,190  1,179,315 
Auto Components — 1.5%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14    4,004  3,418,134 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    1,876  1,436,349 
Dayco Products LLC – (Mark IV Industries, Inc.),       
 Replacement Term B Loan, 8.75%, 6/21/11 (b)(c)    854  352,803 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 31

Schedule of Investments (continued) BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
Auto Components (concluded)       
Delphi Corp. (b)(c):       
     Initial Tranche C Loan Debtor in Possession,       
     10.50%, 12/31/09  USD  4,538  $ 2,495,820 
     Subsequent Tranche C Loan Debtor in Possession,       
     9.50%, 12/31/09    462  254,180 
Mark IV Industries:       
     Replacement Term B Loan, 8.50%, 5/01/10    20  — 
     US Term Loan, Debtor in Possession Loan,       
     8.50%, 5/01/10    101  90,725 
      8,048,011 
Beverages — 0.4%       
Culligan International Co., Loan (Second Lien), 5.28%,       
 4/24/13  EUR  1,500  537,604 
InBev NV/SA, Bridge Loan, 1.95%, 7/15/13  USD  1,500  1,421,250 
Le-Nature’s, Inc., Tranche B Loan, 9.39% – 9.42%,       
 9/30/11 (b)(c)    1,000  195,000 
      2,153,854 
Building Products — 0.9%       
Building Materials Corp. of America, Term Loan Advance,       
 3.06%, 2/22/14    2,586  2,359,709 
Custom Building Products, Inc., Loan (Second Lien),       
 10.75%, 4/20/12    1,500  1,404,375 
Momentive Performance Materials (Blitz 06-103 GmbH),       
 Tranche B-2 Term Loan, 2.74%, 12/04/13  EUR  997  1,076,830 
United Subcontractors, First Lien Term Loan, 2.10%,       
 12/27/12  USD  143  121,744 
      4,962,658 
Capital Markets — 0.2%       
Marsico Parent Co., LLC, Term Loan, 4.81%, 12/15/14    462  198,749 
Nuveen Investments, Inc., Term Loan, 3.49% – 3.50%,       
 11/13/14    1,359  1,103,211 
      1,301,960 
Chemicals — 3.6%       
Ashland, Inc., Term B Borrowing, 7.65%, 5/13/14    889  903,747 
Brenntag Holdings Gmbh & Co. KG:       
     Facility 2, 4.27%, 7/17/15    500  413,000 
     Facility 3A (Second Lien), 5.65%, 7/17/15  EUR  115  136,147 
     Facility 3B Second Lien, 5.65%, 7/17/15    385  455,934 
     Facility B6B, 3.60%, 1/20/14    218  297,235 
     Loan B6A, 3.60%, 1/20/14    282  383,929 
Cognis GmbH:       
     Facility A (French) 3.27%, 9/16/13    803  988,926 
     Facility B (French) 3.27%, 9/16/13    197  242,186 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.85%, 5/31/14  USD  449  278,290 
ElectricInvest Holding Co. Ltd. (Viridian Group Plc)       
 Junior Term Facility:       
     5.00%, 12/21/12  EUR  894  819,938 
     5.04%, 12/21/12  GBP  900  937,698 
Huish Detergents Inc., Tranche B Term Loan, 2.02%,       
 4/26/14  USD  1,237  1,179,629 
Ineos US Finance LLC:       
     Term A4 Facility, 7.00%, 12/14/12    334  267,699 
     Term B2 Facility, 7.50%, 12/16/13    1,631  1,239,581 
     Term C2 Facility, 8.00%, 12/16/14    1,631  1,239,581 
Nalco Co., Term Loan, 6.50%, 5/06/16    2,075  2,103,531 
PQ Corp. (fka Niagara Acquisition, Inc.):       
     Loan (Second Lien), 6.77%, 7/30/15    3,250  1,787,500 
     Term Loan (First Loan), 3.52% – 3.75%, 7/31/14    3,960  3,263,700 
Rockwood Specialties Group, Inc., Term Loan H, 6.00%,       
 5/15/14    940  946,544 
Solutia Inc., Loan, 7.25%, 2/28/14    1,732  1,714,728 
      19,599,523 

    Par   
Floating Rate Loan Interests    (000)           Value 
Commercial Services & Supplies — 1.3%       
ARAMARK Corp.:       
     Letter of Credit, 0.22%, 1/26/14  USD  185  $ 172,822 
     U.S. Term Loan, 2.47%, 1/26/14    2,907  2,720,334 
Casella Waste Systems, Inc., Term B Loan, 5.60%,       
 3/31/14    635  636,588 
EnviroSolutions Real Property Holdings, Inc., Initial Term     
 Loan, 10.50%, 7/07/12    506  365,707 
Kion Group GmbH (formerly Neggio Holdings 3 GmbH):     
     Facility B, 2.51%, 12/29/14    250  158,594 
     Facility C, 2.76%, 12/29/15    250  158,594 
SIRVA Worldwide, Inc., Loan (Second Lien), 12.00%,       
 5/12/15    259  19,412 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.26% – 2.27%, 4/02/14    2,715  2,138,350 
West Corp., Term B-2 Loan, 2.64% – 2.65%, 10/24/13  880  834,806 
      7,205,207 
Communications Equipment — 0.1%       
Safenet, Inc., Term Loan (First Lien), 2.77%, 4/12/14  696  641,227 
Computers & Peripherals — 0.4%       
Intergraph Corp.:       
     Initial Term Loan (First Lien), 2.37%, 5/29/14    1,431  1,373,600 
     Second-Lien Term Loan, 6.26% – 6.37%, 11/28/14  750  699,375 
      2,072,975 
Construction & Engineering — 0.1%       
Brand Energy & Infrastructure Services, Inc.       
 (FR Brand Acquisition Corp.):       
     First Lien Term Loan B, 2.31% – 2.63%, 2/07/14  31  27,510 
     Second Lien Term Loan, 6.31% – 6.44%, 2/07/15  1,000  690,000 
      717,510 
Containers & Packaging — 0.8%       
Atlantis Plastic Films, Inc., Term Loan (Second Lien),       
 12.25%, 3/22/12 (b)(c)    250  — 
Graham Packaging Co., LP, B Term Loan, 2.56%, 10/07/11  898  873,017 
Graphic Packaging International, Inc., Incremental Term     
 Loan, 3.08% – 3.35%, 5/16/14    1,324  1,291,160 
Smurfit-Stone Container Enterprise, Inc.:       
     Tranche C, 2.57%, 11/01/11    198  188,044 
     Tranche C-1 Term Loan, 2.57%, 11/01/11    60  56,854 
Smurfit-Stone Container Enterprises, Inc., U.S. Term Loan     
 Debtor in Possession, 10.00%, 7/28/10    1,301  1,313,900 
Smurfit-Stone Container Enterprises, Inc. (b)(c):       
     Deposit Funded Facility, 4.50%, 11/01/10    92  87,705 
     Tranche B, 2.57%, 11/01/11    105  99,811 
Smurfit-Stone Container, Revolving Credit US,       
 0.01% – 4.50%, 11/01/09    459  437,532 
Smurfit-Stone Container, Canadian Revolving Credit,       
 2.28% – 5.00%, 11/02/09    152  145,116 
      4,493,139 
Distributors — 0.1%       
Keystone Automotive Operations, Inc., Loan, 3.77% – 5.75%     
 1/12/12    1,419  773,397 
Diversified Consumer Services — 0.9%       
Coinmach Service Corp., Term Loan, 3.28% – 3.43%,       
 11/14/14    4,690  3,986,905 
Education Management, LLC, Term Loan C, 2.38%,       
 6/01/13    748  714,995 
      4,701,900 

See Notes to Financial Statements.

32 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
Diversified Financial Services — 0.0%       
Professional Service Industries, Inc., Term Loan       
(First Lien), 3.02%, 10/31/12  USD  620  $ 310,223 
Diversified Telecommunication Services — 1.6%       
BCM Ireland Holdings Ltd. (Eircom):       
     Facility B, 2.37%, 9/30/15  EUR  1,970  2,567,463 
     Facility C, 2.62%, 9/30/16    1,970  2,567,750 
Hawaiian Telcom Communications, Inc., Tranche C Term       
 Loan, 4.75%, 5/30/14  USD  1,921  1,165,804 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    350  343,000 
PAETEC Holding Corp., Replacement Term Loan, 2.76%,       
 2/28/13    422  397,514 
Time Warner Telecom Holdings Inc., Term Loan B Loan,       
 2.02%, 1/07/13    1,055  1,028,240 
Wind Telecomunicazioni S.P.A., A1 Term Loan Facility,       
 2.95% – 3.02%, 9/22/12  EUR  424  577,255 
      8,647,026 
Electric Utilities — 0.1%       
TPF Generation Holdings, LLC:       
     Synthetic LC Deposit (First Lien), 2.28%,       
     12/15/13  USD  151  142,317 
     Synthetic Revolving Deposit, 2.28%, 12/15/11    47  44,613 
     Term Loan (First Loan), 2.26%, 12/15/13    429  405,181 
      592,111 
Electrical Equipment — 0.2%       
Electrical Components International Holdings Co. (ECI)       
 Term Loan (Second Lien), 11.50%, 5/01/14    500  25,000 
Generac Acquisition Corp., Term Loan (First Lien), 2.78%,       
 11/10/13    1,464  1,227,277 
      1,252,277 
Electronic Equipment, Instruments & Components — 0.9%     
Flextronics International Ltd.:       
     A Closing Date Loan, 2.52% – 2.85%, 10/01/14    3,820  3,424,445 
     Delay Draw Term Loan, 2.76%, 10/01/14    1,098  984,037 
Matinvest 2 SAS/Butterfly Wendel US, Inc.       
 (Deutsche Connector):       
     B-2 Facility, 2.97%, 6/22/14    445  249,061 
     B-2 Facility, 2.97%, 6/22/14    33  18,586 
     C-2 Facility, 3.22%, 6/22/15    719  402,826 
     C-2 Facility, 3.22%, 6/22/15    110  61,536 
      5,140,491 
Energy Equipment & Services — 0.6%       
Dresser, Inc. Term B Loan, 2.68%, 5/04/14    2,082  1,940,767 
MEG Energy Corp., Initial Term Loan, 2.60%, 4/03/13    484  449,283 
Trinidad USA Partnership LLP, US Term Loan, 2.78%,       
 5/01/11    1,022  868,678 
      3,258,728 
Food & Staples Retailing — 1.3%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.53%, 7/09/15  GBP  3,500  4,881,995 
DSW Holdings Inc., Loan, 4.27%,       
 3/21/12  USD  500  421,667 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15    750  776,250 
Wm. Bolthouse Farms, Inc., Term Loan (First Lien), 2.56%,     
 12/16/12    872  841,462 
      6,921,374 

    Par   
Floating Rate Loan Interests    (000)  Value 
Food Products — 1.2%       
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 0.51%, 4/12/13  USD  280  $ 281,481 
     Tranche B Term Loan, 8.00%, 4/12/13    489  492,054 
Michael Foods, Term Loan B, 6.50%, 4/24/14    1,478  1,494,122 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%,       
 4/12/13    1,822  1,833,438 
Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,       
 10/06/14    2,468  2,496,111 
      6,597,206 
Health Care Equipment & Supplies — 0.7%       
Biomet, Inc., Dollar Term Loan, 3.26% – 3.61%, 3/25/15  1,678  1,610,226 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.26% – 3.60%, 5/20/14    2,463  2,351,688 
      3,961,914 
Health Care Providers & Services — 3.1%       
CCS Medical Inc. (Chronic Care):       
     Loan Debtor in Possession, 11.00%, 11/14/09    31  30,309 
     Term Loan (First Lien), 4.35%, 9/30/12 (b)(c)    875  394,844 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.51%, 7/25/14    410  382,005 
     Funded Term Loan, 2.51% – 2.62%, 7/25/14    8,041  7,490,958 
Catalent Pharma Solutions, Inc. (fka Cardinal Health       
 409, Inc.), Euro Term Loan, 2.74%, 4/10/14  EUR  1,960  2,346,245 
DaVita, Inc., Tranche B-1 Term Loan, 1.77% – 2.10%,       
 10/05/12  USD  750  719,687 
HCA Inc., Tranche A-1 Term Loan, 2.10%, 11/17/12    1,824  1,703,243 
HealthSouth Corp., Term Loan, 2.52% – 2.53%, 3/10/13    2,312  2,235,586 
Surgical Care Affiliates, LLC, Term Loan, 2.60%, 12/29/14    721  650,307 
Vanguard Health Holding Co. II, LLC (Vanguard Health       
 System, Inc.), Replacement Term Loan, 2.51%, 9/23/11  1,317  1,281,588 
      17,234,772 
Health Care Technology — 0.2%       
Sunquest Information Systems, Inc. (Misys Hospital       
 Systems, Inc.), Term Loan, 3.52% – 3.74%, 10/13/14    1,474  1,343,569 
Hotels, Restaurants & Leisure — 2.2%       
BLB Worldwide Holdings, Inc. (Wembley, Inc.), First Priority     
 Term Loan, 4.75%, 9/01/09 (b)(c)    1,989  1,093,953 
CCM Merger Inc. (Motor City Casino), Term B Loan, 8.50%,     
 7/13/12    1,503  1,402,917 
Green Valley Ranch Gaming, LLC:       
     Second Lien Term Loan, 3.88%, 8/16/14    1,500  307,500 
     Term Loan (New), 2.54% – 4.00%, 2/16/14    471  327,045 
Harrah’s Operating Co., Inc.:       
     Term B-1 Loan, 3.50%, 1/28/15    487  391,498 
     Term B-2 Loan, 3.50%, 1/28/15    613  493,529 
     Term B-3 Loan, 3.50% – 3.60%, 1/28/15    704  566,874 
OSI Restaurant Partners, LLC, Revolving Credit       
 Loan, 2.56%, 6/14/13    32  25,482 
Penn National Gaming, Inc., Term Loan B, 2.01% – 2.21%,     
 10/03/12    3,828  3,720,123 
QCE, LLC (Quiznos), Term Loan (First Lien), 2.88%,       
 5/05/13    1,940  1,445,300 
Travelport LLC (fka Travelport Inc.), Loan, 8.49%,       
 3/27/12    4,607  2,580,008 
      12,354,229 
Household Durables — 0.9%       
Berkline/Benchcraft, LLC., Term Loan, 4.04%,       
 11/03/11 (b)(c)    107  5,373 
Jarden Corp., Term Loan B3, 3.10%, 1/24/12    816  805,133 
Simmons Bedding Co., Tranche D Term Loan, 10.50%,       
 12/19/11    3,250  3,157,918 
Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14    947  878,467 
      4,846,891 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 33

Schedule of Investments (continued) BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
Household Products — 0.2%       
Central Garden & Pet Co., Tranche B Term Loan, 1.77%,       
 9/30/12  USD  991  $ 929,582 
IT Services — 2.1%       
Amadeus IT Group SA/Amadeus Verwaltungs GmbH:       
     Term B3 Facility, 2.54%, 6/30/13  EUR  307  388,217 
     Term B4 Facility, 2.54%, 6/30/13    184  231,783 
     Term C3 Facility, 3.04%, 6/30/14    307  388,217 
     Term C4 Facility, 3.04%, 6/30/14    184  231,783 
Audio Visual Services Group, Inc., Loan (Second Lien),       
 7.10%, 12/28/14  USD  1,040  83,184 
Ceridian Corp., US Term Loan, 3.27%, 11/09/14    3,460  2,961,910 
First Data Corp.:       
     Initial Tranche B-1 Term Loan, 3.02%, 9/24/14    3,664  3,052,266 
     Initial Tranche B-2 Term Loan, 3.02%, 9/24/14    1,237  1,029,624 
     Initial Tranche B-3 Term Loan, 3.02%, 9/24/14    563  467,929 
RedPrairie Corp., Term Loan B, 3.44% – 5.25%, 7/20/12    605  523,240 
SunGard Data Systems Inc. (Solar Capital Corp.):       
     Incremental Term Loan, 6.75%, 2/28/14    1,197  1,189,931 
     Tranche B U.S. Term Loan, 3.95% – 4.09%, 2/28/16    127  122,972 
Verifone, Inc., Term B Loan, 3.02%, 10/31/13    910  864,500 
      11,535,556 
Independent Power Producers & Energy Traders — 1.6%       
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-2 Term Loan, 3.78% – 3.79%,       
     10/10/14    4,188  3,182,903 
     Initial Tranche B-3 Term Loan, 3.78% -3.79%,       
     10/10/14    7,233  5,473,543 
      8,656,446 
Insurance — 0.1%       
Conseco, Inc., Term Loan, 6.50%, 10/10/13    729  554,345 
Leisure Equipment & Products — 0.2%       
24 Hour Fitness Worldwide, Inc., Tranche B Term Loan,       
 2.77% – 3.08%, 6/08/12    968  841,725 
Life Sciences Tools & Services — 0.3%       
Life Technologies Corp., Term B Facility, 5.25%, 11/23/15    1,783  1,800,956 
Machinery — 1.7%       
Blount, Inc., Term Loan B, 2.02% – 3.25%, 8/09/10    651  612,091 
LN Acquisition Corp. (Lincoln Industrial), Initial Term Loan       
 (Second Lien), 6.07%, 1/09/15    1,500  1,110,000 
NACCO Materials Handling Group, Inc., Loan,       
 2.26% – 3.44%, 3/21/13    485  329,800 
Navistar Financial Corp., Tranche A Term Loan, 2.31%,       
 3/27/10    1,000  970,000 
Navistar International Corp.:       
     Term Advance, 3.51%, 1/19/12    3,447  3,205,400 
     Revolving Credit-Linked Deposit, 3.36% – 3.51%,       
     1/19/12    1,253  1,165,600 
Oshkosh Truck Corp., Term B Loan, 6.60% – 6.64%,       
 12/06/13    1,570  1,562,971 
Standard Steel, LLC:       
     Delayed Draw Term Loan, 8.25%, 7/02/12    74  58,734 
     Initial Term Loan, 9.00%, 7/02/12    369  291,416 
      9,306,012 
Marine — 0.3%       
Delphi Acquisition Holding I BV (fka Dockwise):       
     Facility B2, 2.60%, 1/12/15    939  812,468 
     Facility C2, 3.47%, 1/11/16    939  812,468 
      1,624,936 

    Par   
Floating Rate Loan Interests    (000)           Value 
Media — 11.8%       
Acosta, Inc., Term Loan, 2.54%, 7/28/13  USD  970  $ 917,863 
Affinion Group Holdings, Inc., Loan, 8.27%, 3/01/10    1,048  916,694 
AlixPartners, LLP, Tranche C Term Loan, 2.28% – 2.51%,       
 10/12/13    1,446  1,406,273 
Alpha Topco Limited (Formula One):       
     Facility B1, 2.51%, 12/31/13    840  706,380 
     Facility B2, 2.51%, 12/31/13    568  477,139 
     Facility D, 3.76%, 6/30/14    1,000  740,000 
Atlantic Broadband Finance, LLC:       
     Term Loan B-2-B, 6.75%, 6/01/13    935  935,386 
     Tranche B-2-A Term Loan, 2.85%, 9/01/11    35  34,372 
CSC Holdings Inc (Cablevision), Incremental B Term Loan,     
 2.02% – 2.07%, 3/29/13    2,630  2,542,399 
Catalina Marketing Corp., Initial Term Loan, 3.03%,       
 10/01/14    1,075  1,009,897 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    3,713  3,564,000 
Cequel Communications, LLC, Term Loan, 2.27%,       
 11/05/13    7,341  6,932,774 
Charter Communications Operating, LLC, New Term Loan,       
 6.25%, 3/06/14 (b)(c)    3,282  3,045,871 
Charter Communications, Term Loan B1, 4.25%,       
 3/25/14    750  749,625 
FoxCo Acquisition Sub, LLC, Term Loan, 7.25%, 7/14/15    898  735,531 
Gray Television, Inc., Term Loan B, 3.78%, 12/31/14 (f)    726  523,926 
HIT Entertainment, Inc., Term Loan (Second Lien), 5.98%,       
 2/26/13    1,000  492,500 
HMH Publishing Co. Ltd., Mezzanine, 17.50%,       
 11/14/14 (f)    9,615  1,442,193 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.52% – 2.54%, 3/08/14    1,478  623,013 
Harland Clarke Holdings Corp. (fka Clarke American Corp.),     
 Tranche B Term Loan, 2.79% – 3.10%, 6/30/14    1,469  1,200,268 
Insight Midwest Holdings, LLC, B Term Loan, 2.28%,       
 4/07/14    1,550  1,479,143 
Intelsat Corp. (fka PanAmSat Corp.):       
     Term Loan B-2-A, 2.78%, 1/03/14    588  554,572 
     Term Loan B-2-B, 2.78%, 1/03/14    587  555,766 
     Term Loan B-2-C, 2.78%, 1/03/14    587  555,766 
Knology, Inc., Term Loan, 2.51%, 6/30/12    483  458,659 
Lamar Media Corp.:       
     B Incremental, 5.50%, 9/28/12    1,223  1,204,895 
     Term Loan, 5.50%, 9/30/12    500  492,500 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.53%, 6/30/15  EUR  337  272,803 
     Facility C1, 3.78%, 6/30/16    337  272,803 
     Facility D, 4.90%, 12/28/16    904  194,454 
MCNA Cable Holdings LLC (OneLink Communications),       
 Loan, 8.31%, 3/01/13 (f)  USD  1,855  704,759 
Mediacom Illinois, LLC (fka Mediacom Communications,       
 LLC), Tranche D Term Loan, 3.96%, 3/31/17    1,000  997,500 
MCC Iowa LLC (Mediacom Broadband Group), Tranche E       
 Term Loan, 6.50%, 1/03/16    449  449,428 
Metro-Goldwyn-Mayer Inc., Tranche B Term Loan, 3.51%,       
 4/09/12    2,757  1,533,358 
Mission Broadcasting, Inc., Term B Loan, 2.35%,       
 10/01/12    1,873  1,573,273 
Multicultural Radio Broadcasting, Inc., Term Loan, 3.03%,       
 12/18/12    317  221,900 
NV Broadcasting, LLC:       
     Term Loan Debtor in Possession, 13.00%, 2/25/10  USD  120  118,800 
     Term Loan (First Lien), 5.25%, 11/01/13 (b)(c)    821  205,367 
Newsday, LLC, Fixed Rate Term Loan, 9.75%, 8/01/13    1,500  1,526,250 
Nexstar Broadcasting, Inc., Term B Loan, 2.09% – 2.24%,       
 10/01/12    1,771  1,487,936 

See Notes to Financial Statements.

34 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)           Value 
Media (concluded)       
Nielsen Finance LLC:       
     Class A Dollar Term Loan, 2.28%, 8/09/13  USD  1,302  $ 1,211,586 
     Class B Dollar Term Loan, 4.03%, 5/01/16    2,718  2,547,420 
Parkin Broadcasting, LLC, Term Loan, 5.25%,       
 11/01/13 (b)(c)    169  42,127 
Penton Media, Inc.:       
     Loan (Second Lien), 5.49%, 2/01/14    1,000  210,000 
     Term Loan (First Lien), 2.51% – 2.74%, 2/01/13    1,100  736,791 
ProtoStar Ltd. (b)(c):       
     Debtor in Possession Term Loan, 18.00%, 10/15/09    84  83,842 
     Revolver, 18.00%, 9/30/10    407  398,860 
Puerto Rico Cable Acquisition Co. Inc. (dba Choice TV),       
 Term Loan (Second Lien), 7.81%, 2/15/12    692  450,000 
Springer:       
     Term Loan B, 2.69%, 9/16/11    820  760,086 
     Term Loan C-2, 3.35%, 5/05/12    597  553,254 
     Term Loan E-2, 3.29%, 9/16/12    229  212,398 
     Term Loan E2-U, 3.29%, 9/16/12    311  287,989 
Sunshine Acquisition Ltd. (aka HIT Entertainment),       
 Term Facility, 2.73%, 6/01/12    1,268  1,054,050 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    1,496  1,504,580 
Telecommunications Management, LLC:       
     Multi-Draw Term Loan, 3.76%, 6/30/13    232  146,350 
     Term Loan, 3.76%, 6/30/13    922  580,545 
UPC Financing Partnership, Facility U, 4.54%,       
 12/31/17  EUR  3,013  3,940,858 
Virgin Media Investment Holdings Ltd.:       
     B1 Facility, 3.89%, 7/30/12  GBP  380  568,963 
     B2 Facility, 3.89%, 3/09/12    203  303,947 
     C Facility, 3.62%, 7/17/13    2,000  2,865,190 
World Color Press Inc. and World Color (USA) Corp.       
 (fka Quebecor World Inc.), Advance, 9.00%, 6/30/12    1,300  1,290,250 
Yell Group Plc Facility B2, 3.49%, 10/29/12  USD  2,150  1,453,041 
      65,058,163 
Metals & Mining — 0.1%       
Essar Stell Algoma Inc. (fka Algoma Steel Inc.), Term       
 Loan, 2.77%, 6/20/13    495  445,455 
Multi-Utilities — 0.4%       
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     First Lien Term Loan B, 3.13%, 11/01/13    1,895  1,744,426 
     Synthetic Letter of Credit, 0.48%, 11/01/13    244  224,763 
Mach Gen, LLC Synthetic, LC Loan (First Lien), 0.35%,       
 2/22/13    69  63,696 
      2,032,885 
Oil, Gas & Consumable Fuels — 1.1%       
Big West Oil, LLC (b)(c):       
     Delayed Advance Loan, 4.50%, 5/15/14    546  502,477 
     Initial Advance Loan, 4.50%, 5/15/14    1,007  926,778 
Coffeyville Resources, LLC:       
     Funded Letter of Credit, 6.50%, 12/28/10    97  95,108 
     Tranche D Term Loan, 8.50%, 12/30/13    780  761,982 
Drummond Co., Inc., Term Advance, 1.51%, 2/14/11    1,075  1,042,750 
Niska Gas Storage Canada ULC Canadian, Term Loan B,       
 2.02%, 5/12/13    451  425,849 
Niska Gas Storage US, LLC, US Term B Loan, 2.02%,       
 5/12/13    47  44,749 
Niska Gas Storage US, LLC, Wild Goose Acquisition       
 Draw-US Term B, 2.02%, 5/12/13    32  30,312 
Turbo Beta Ltd., Dollar Facility, 14.50%, 3/15/18    3,068  2,147,270 
      5,977,275 

    Par   
Floating Rate Loan Interests    (000)  Value 
Paper & Forest Products — 1.6%       
Georgia-Pacific LLC:       
     Term Loan B2, 2.34% – 2.46%, 12/20/12  USD  1,897  $ 1,833,036 
     Term B Loan, 2.34% – 2.65%, 12/20/12    4,520  4,366,263 
NewPage Corp., Term Loan, 4.06%, 12/22/14    2,593  2,401,374 
Verso Paper Finance Holdings LLC, Loan, 6.73%,       
 2/01/13 (f)    600  120,029 
      8,720,702 
Personal Products — 0.4%       
American Safety Razor Co., LLC, Loan (Second Lien),       
 6.52%, 1/30/14    2,500  1,950,000 
Real Estate Management & Development — 0.1%       
Enclave, Term Loan B, 6.14%, 3/01/12    3,000  395,397 
Georgian Towers, Term Loan, 6.14%, 3/01/12    3,000  372,375 
Pivotal Promontory, LLC, Second Lien Term Loan,       
 8.75%, 8/31/11 (b)(c)    750  37,500 
      805,272 
Software — 0.1%       
Bankruptcy Management Solutions, Inc., Term Loan (First     
 Lien), 4.27%, 7/31/12    945  538,792 
Specialty Retail — 0.5%       
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan, 2.52%,     
 10/20/13    1,250  1,172,916 
Eye Care Centers of America, Inc., Term Loan,       
 2.77% – 3.16%, 3/01/12    522  506,296 
OSH Properties, LLC (Orchard Supply), Term Loan B,       
 2.72%, 12/04/11    1,500  1,245,000 
      2,924,212 
Textiles, Apparel & Luxury Goods — 0.2%       
Hanesbrands Inc., Term B Loan, 5.02% – 5.25%, 9/05/13  872  872,270 
St. John Knits International, Inc., Term Loan, 10.00%, 3/23/12  631  454,077 
Springer, Term Loan E, 3.29%, 9/16/12    45  41,719 
      1,368,066 
Trading Companies & Distributors — 0.2%       
Beacon Sales Acquisition, Inc., Term B Loan, 2.26% – 2.60%,     
 9/30/13    1,191  1,119,187 
Wireless Telecommunication Services — 0.6%       
Cellular South, Inc.:       
     Delayed Draw Term Loan, 2.01%, 5/29/14    500  477,500 
     Term Loan, 2.01% – 4.00%, 5/29/14    1,470  1,403,850 
Digicel International Finance Ltd., Tranche A, 3.13%,       
 3/01/12    1,150  1,092,500 
      2,973,850 
Total Floating Rate Loan Interests — 47.8%      263,340,708 
Foreign Agency Obligations       
Peru Government International Bond, 8.38%, 5/03/16  4,871  5,699,070 
Turkey Government International Bond, 7.00%, 9/26/16  5,093  5,385,847 
Total Foreign Agency Obligations — 2.0%      11,084,917 
  Beneficial   
  Interest   
Other Interests (g)    (000)   
Diversified Financial Services — 0.1%       
J.G. Wentworth LLC Preferred Equity Interests    1  502,843 
Health Care Providers & Services — 0.0%       
Critical Care Systems International, Inc.    8  1,525 
Household Durables — 0.0%       
Berkline Benchcraft Equity LLC    3  — 
Total Other Interests — 0.1%      504,368 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 35

Schedule of Investments (continued) BlackRock Limited Duration Income Trust (BLW)
(Percentages shown are based on Net Assets)

Preferred Stocks  Shares  Value 
Capital Markets — 0.0%     
Marsico Parent Superholdco, LLC (b)(h)  177  $ 45,135 
Media — 0.0%     
CMP Susquehanna Radio Holdings Corp. (h)  45,243  — 
Total Preferred Stocks — 0.0%    45,135 
U.S. Government Sponsored  Par   
Agency Obligations  (000)   
Agency Obligations — 3.1%     
Fannie Mae, 7.25%, 1/15/10  USD 17,000  17,450,245 
Mortgage-Backed Securities — 24.1%     
Fannie Mae Guaranteed Pass Through Certificates:     
     5.00%, 9/15/24 (i)  121,000  126,104,748 
     5.50%, 12/01/28 – 11/01/33 (j)(k)  6,563  6,876,101 
Total U.S. Government Sponsored     
Agency Obligations — 27.2%    150,431,094 
U.S. Treasury Obligations     
U.S. Treasury Notes:     
     3.38%, 9/15/09  3,425  3,428,747 
     4.25%, 8/15/15  1,815  1,967,572 
Total U.S. Treasury Obligations — 1.0%    5,396,319 
Warrants (l)  Shares   
Machinery — 0.0%     
Synventive Molding Solutions (expires 1/15/13) (b)  1  — 
Media — 0.0%     
CMP Susquehanna Radio Holdings Corp. (expires     
3/26/19) (b)  51,701  — 
Other — 0.0%     
Turbo Cayman Ltd. (No Expiration) (b)  2  — 
Total Warrants — 0.0%    — 
Total Long-Term Investments     
(Cost — $662,132,560) — 105.4%    581,336,469 
Short-Term Securities     
BlackRock Liquidity Funds, TempFund, 0.22% (m)(n)  96,671,566  96,671,566 
Total Short-Term Securities     
(Cost — $96,671,566) — 17.5%    96,671,566 
Options Purchased  Contracts   
Over-the-Counter Call Options     
Marsico Parent Superholdco LLC, expiring December     
 2019 at USD 942.86, Broker Goldman Sachs & Co.  46  46,000 
Total Options Purchased     
(Premiums Paid — $44,978) — 0.0%    46,000 
Total Investments     
(Cost — $758,849,104*) — 122.9%    678,054,035 
Liabilities in Excess of Other Assets — (22.9)%    (126,549,501) 
Net Assets — 100.0%    $551,504,534 

* The cost and unrealized appreciation (depreciation) of investments as of August 31, 
  2009, as computed for federal income tax purposes, were as follows:   
  Aggregate cost        $ 759,386,517 
  Gross unrealized appreciation      $ 9,364,256 
  Gross unrealized depreciation        (90,696,738) 
  Net unrealized depreciation      $ (81,332,482) 
(a) Variable rate security. Rate shown is as of report date.       
(b) Non-income producing security.         
(c) Issuer filed for bankruptcy and/or is in default of interest payments.   
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. 
  These securities may be resold in transactions exempt from registration to qualified 
  institutional investors.         
(e) Convertible security.         
(f) Represents a payment-in-kind security which may pay interest/dividends in addi- 
  tional par/shares.           
(g) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
  zation entities and are non-income producing.       
(h) Security is perpetual in nature and has no stated maturity date.     
(i) Represents or includes a to-be-announced transaction. The Trust has committed to 
  purchasing (selling) securities for which all specific information is not available at 
  this time.           
            Unrealized 
  Counterparty      Value    Appreciation 
  Goldman Sachs & Co.  $126,104,748  $ 1,285,686 
(j) All or a portion of security has been pledged as collateral for financial futures 
  contracts.           
(k) All or a portion of security has been pledged as collateral in connection with open 
  swap contracts.           
(l) Warrants entitle the Trust to purchase a predetermined number of shares of com- 
  mon stock and are non-income producing. The purchase price and number of 
  shares are subject to adjustment under certain conditions until the expiration date. 
(m) Investments in companies considered to be an affiliate of the Trust, for purposes of 
  Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
        Net     
  Affiliate    Activity    Income 
  BlackRock Liquidity Funds, TempFund  USD 96,671,566  $ 176,533 
(n) Represents the current yield as of report date.       
•  For Fund compliance purposes, the Fund’s industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or ratings group indexes, and/or as defined by Fund management. 
  This definition may not apply for purposes of this report, which may combine industry 
  sub-classifications for reporting ease.         
•  Foreign currency exchange contracts as of August 31, 2009 were as follows: 
            Unrealized 
  Currency  Currency    Settlement Appreciation 
  Purchased  Sold  Counterparty  Date (Depreciation) 
  USD 4,838,602 EUR 3,396,500  Citibank NA  9/16/09  $ (30,749) 
  USD 19,093,897  EUR 13,675,000  Deutsche Bank AG 9/16/09  (511,105) 
  USD 8,998,740 GBP 5,505,500  Citibank NA  10/28/09  36,788 
  Total          $ (505,066) 
•  Financial futures contracts purchased as of August 31, 2009 were as follows: 
      Expiration  Face  Unrealized 
  Contracts  Issue       Date  Value  Appreciation 
  50 5-Year U.S. Treasury Bond December 2009  USD 5,740,422  $ 22,078 

See Notes to Financial Statements.

36 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (concluded) BlackRock Limited Duration Income Trust (BLW)

 •  Credit default swaps on traded indexes — buy protection outstanding as of August 31,    The following table summarizes the inputs used as of August 31, 2009 in determin- 
  2009 were as follows:            ing the fair valuation of the Fund’s investments:     
        Pay      Notional      Valuation          Investments in 
        Fixed      Amount  Unrealized    Inputs          Securities 
  Index  Rate  Counterparty Expiration  (000)  Depreciation                Assets 
          Credit Suisse  June        Level 1 — Short-Term Securities      $ 96,671,566 
  LCDX Index  5.00%  International  2014  USD 930  $ (83,859)    Level 2           
                     Long-Term Investments:       
 •  Currency Abbreviations:               Asset-Backed Securities      9,373,195 
  EUR  Euro                 Common Stocks          5,545 
  GBP  British Pound               Corporate Bonds        132,134,077 
  USD  US Dollar               Floating Rate Loan Interests      179,430,318 
 •  Effective September 1, 2008, the Fund adopted Financial Accounting Standards       Foreign Agency Obligations      11,084,917 
  Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-       Preferred Stocks          45,135 
                       U.S. Government Sponsored Agency Obligations    150,431,094 
  ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a       U.S. Treasury Obligations      5,396,319 
  framework for measuring fair values and requires additional disclosures about the                 
  use of fair value measurements. Various inputs are used in determining the fair    Total Level 2          487,900,600 
  value of investments, which are as follows:          Level 3           
  • Level 1 — price quotations in active markets/exchanges for identical securities     Long-Term Investments:       
                       Asset-Backed Securities      2,668,212 
  • Level 2 — other observable inputs (including, but not limited to: quoted prices for       Common Stocks          81,956 
    similar assets or liabilities in markets that are active, quoted prices for identical       Corporate Bonds        6,270,943 
    or similar assets or liabilities in markets that are not active, inputs other than       Floating Rate Loan Interests      83,910,390 
    quoted prices that are observable for the assets or liabilities (such as interest       Other Interests          504,368 
    rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and  Total Level 3          93,435,869 
    default rates) or other market-corroborated inputs)        Total          $678,008,035 
  • Level 3 — unobservable inputs based on the best information available in the                 
    circumstances, to the extent observable inputs are not available (including the    Valuation        Other Financial 
    Fund’s own assumptions used in determining the fair value of investments)    Inputs        Instruments1 
  The inputs or methodology used for valuing securities are not necessarily an indica-              Assets  Liabilities 
  tion of the risk associated with investing in those securities. For information about    Level 1      $ 22,078  — 
  the Fund’s policy regarding valuation of investments and other significant accounting    Level 2        82,788  $ (625,713) 
  policies, please refer to Note 1 of the Notes to Financial Statements.    Level 3        63,812  — 
                    Total      $ 168,678  $ (625,713) 
                     1  Other financial instruments are swaps, futures, options purchased and foreign 
                      currency exchange contracts. Swaps, futures and foreign currency exchange 
                      contracts are shown at the unrealized appreciation/depreciation on the 
                      instrument and options purchased are shown at market value.   
  The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:           
                          Investments in Securities     
                Asset-Backed  Common  Corporate  Floating Rate       Other   
                  Securities    Stocks    Bonds  Loan Interests Interests  Total 
  Balance, as of August 31, 2008        —    —    —  $27,080,000  $ 2,546  $ 27,082,546 
  Accrued discounts/premiums        —    —    —  —  —  — 
  Realized gain (loss)          —    —  $ 76  (6,382,877)  —  (6,382,801) 
  Change in unrealized appreciation (depreciation)2    $ (3,780)  —    (875,732)  (3,027,612)  (1,021)  (3,908,145) 
  Net purchases (sales)          —    —    (491,063)  (8,418,888)  —  (8,909,951) 
  Net transfers in/out of Level 3        2,671,992     $ 81,956    7,637,662  74,659,767  502,843  85,554,220 
  Balance as of August 31, 2009      $ 2,668,212     $ 81,956  $ 6,270,943  $83,910,390  $ 504,368  $93,435,869 
  2   Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations.           
  The following is a reconciliation of other financial instruments for unobservable inputs                 
  (Level 3) used in determining fair value:                       
              Other Financial                 
                Instruments3                 
                Assets                 
  Balance, as of August 31, 2008      —                 
  Accrued discounts/premiums      —                 
  Realized gain (loss)        —                 
  Change in unrealized appreciation (depreciation)    —                 
  Net purchases (sales)        —                 
  Net transfers in/out of Level 3    $ 63,812                 
  Balance as of August 31, 2009    $ 63,812                 
  3   Other financial instruments are unfunded loan commitments.                   
See Notes to Financial Statements.                       
          ANNUAL REPORT              AUGUST 31, 2009    37 

Statements of Assets and Liabilities         
      BlackRock  BlackRock   
    BlackRock  Diversified  Floating Rate  BlackRock 
    Defined  Income  Income  Limited 
    Opportunity  Strategies  Strategies  Duration 
    Credit Trust  Fund, Inc.  Fund, Inc.  Income Trust 
August 31, 2009    (BHL)  (DVF)  (FRA)  (BLW) 
     Assets           
Investments at value — unaffiliated1  $ 140,367,876  $ 128,180,846  $ 277,594,444  $ 581,382,469 
Investments at value — affiliated2  —  2,371,578  2,018,379  96,671,566 
Unrealized appreciation on foreign currency exchange contracts  10,965  2,622  27,341  36,788 
Unrealized appreciation on unfunded loan commitments  60,517  38,010  —  63,812 
Unrealized appreciation on swaps  —  11,300  —  — 
Foreign currency at value3    649,034  100,367  3,476,153  32,591 
Cash    1,910,422  18,789  —  26,795 
Cash pledged as collateral in connection with swaps  —  1,600,000  —  — 
Investments sold receivable    1,838,747  619,692  6,512,374  6,654,815 
Interest receivable    729,682  2,268,686  3,394,297  5,445,172 
Principal paydown receivable    485  —  —  — 
Income receivable — affiliated    241  —  —  — 
Swap premiums paid    —  246,565  989,746  148,946 
Swaps receivable    —  77,396  74,945  — 
Dividends receivable    —  16,822  —  554 
Margin variation receivable    —  —  —  17,188 
Prepaid expenses    48,790  43,771  88,878  60,055 
Other assets    106,457  81,592  61,990  269,647 
Total assets    145,723,216  135,678,036  294,238,547  690,810,398 
     Liabilities           
Bank overdraft    —  —  43,905  — 
Loan payable    27,000,000  18,000,000  38,000,000  — 
Unrealized depreciation on foreign currency exchange contracts  231,252  95,339  406,733  541,854 
Cash held as collateral in connection with swaps  —  —  100,000  — 
Unrealized depreciation on unfunded loan commitments  —  —  49,905  — 
Unrealized depreciation on swaps  —  4,154,306  1,108,878  83,859 
Investments purchased payable  5,147,449  5,080,921  16,737,531  137,777,131 
Deferred income    120,455  80,469  79,562  163,303 
Investment advisory fees payable  114,539  78,449  172,075  249,395 
Income dividends payable    100,398  722  164,503  112,994 
Interest expense payable    24,980  18,696  38,490  — 
Officer’s and Directors’ fees payable  85  258  453  119,793 
Swaps payable    —  122,296  73,465  9,150 
Other affiliates payable    430  366  850  1,728 
Other accrued expenses payable  121,578  89,864  102,633  246,657 
Other liabilities    —  399,955  —  — 
Total liabilities    32,861,166  28,121,641  57,078,983  139,305,864 
Net Assets    $ 112,862,050  $ 107,556,395  $ 237,159,564  $ 551,504,534 
     Net Assets Consist of           
Paid-in capital4,5,6    $ 127,810,765  $ 229,575,720  $ 349,498,291  $ 701,342,104 
Distributions in excess of net investment income  (925,324)  (710,207)  (786,997)  (2,953,716) 
Accumulated net realized loss    (8,005,928)  (68,140,448)  (56,737,331)  (65,590,423) 
Net unrealized appreciation/depreciation  (6,017,463)  (53,168,670)  (54,814,399)  (81,293,431) 
Net Assets    $ 112,862,050  $ 107,556,395  $ 237,159,564  $ 551,504,534 
Net asset value    $ 12.53  $ 8.74  $ 12.93  $ 14.95 
     1 Investment at cost — unaffiliated  $ 146,223,408  $ 177,162,499  $ 330,801,175  $ 662,177,538 
     2 Investment at cost — affiliated  —  $ 2,371,578  $ 2,018,379  $ 96,671,566 
     3 Foreign currency at cost    $ 648,966  $ 99,953  $ 3,469,138  $ 32,006 
     4 Par value per share    $ 0.001  $ 0.10  $ 0.10  $ 0.001 
     5 Shares outstanding    9,008,704  12,306,154  18,336,820  36,889,650 
     6 Shares authorized    unlimited  200 million  200 million  unlimited 
See Notes to Financial Statements.         
38  ANNUAL REPORT  AUGUST 31, 2009     

Statements of Assets and Liabilities (concluded)     
  BlackRock  BlackRock 
  Senior Floating  Senior Floating 
August 31, 2009  Rate Fund, Inc.  Rate Fund II, Inc. 
     Assets     
Investment at value — Master Senior Floating Rate (the “Master LLC”)1  $ 312,548,298  $ 150,735,659 
Capital shares sold receivable  441,324  307,937 
Prepaid expenses  192,030  101,804 
Total assets  313,181,652  151,145,400 
     Liabilities     
Income dividends payable  888,978  386,592 
Contributions payable to the Master LLC  440,318  307,937 
Administration fees payable  65,564  50,418 
Other affiliates payable  4,393  773 
Capital shares redeemed payable  1,006  — 
Officer’s and Directors’ fees payable  238  113 
Other accrued expenses payable  118,760  52,522 
Total liabilities  1,519,257  798,355 
Net Assets  $ 311,662,395  $ 150,347,045 
     Net Assets Consist of     
Paid-in capital2  $ 677,826,264  $ 227,132,287 
Undistributed net investment income  1,249,054  113,729 
Accumulated net realized loss  (314,988,118)  (52,616,500) 
Net unrealized appreciation/depreciation  (52,424,805)  (24,282,471) 
Net Assets  $ 311,662,395  $ 150,347,045 
Net asset value  $ 7.16  $ 7.76 
     1 Cost — investment in Master LLC  $ 364,973,103  $ 175,018,130 
     2 Shares outstanding, par value $0.10 per share, 1 billion shares authorized  43,520,395  19,386,559 
See Notes to Financial Statements.     
                                                         ANNUAL REPORT  AUGUST 31, 2009  39 

Statements of Operations         
      BlackRock  BlackRock   
    BlackRock  Diversified  Floating Rate  BlackRock 
           Defined         Income         Income         Limited 
    Opportunity  Strategies  Strategies       Duration 
    Credit Trust  Fund, Inc.  Fund, Inc.  Income Trust 
Year Ended August 31, 2009             (BHL)         (DVF)         (FRA)         (BLW) 
     Investment Income           
Interest    $ 9,932,361  $ 15,151,985  $ 24,292,175  $ 39,980,390 
Facility and other fees    173,968  136,364  613,979  580,427 
Income — affiliated    20,215  20,647  32,098  188,455 
Total income    10,126,544  15,308,996  24,938,252  40,749,272 
     Expenses           
Investment advisory    1,275,472  924,328  1,919,277  2,819,087 
Professional    384,400  149,397  203,610  187,206 
Borrowing costs1    79,577  258,417  314,968  — 
Accounting services    29,180  26,989  63,840  102,049 
Transfer agent    20,776  31,646  43,750  12,391 
Custodian    14,343  19,355  22,903  34,970 
Officer and Directors    12,993  11,723  28,071  71,284 
Printing    10,280  17,679  27,994  148,152 
Registration    9,511  9,215  9,197  12,579 
Miscellaneous    32,495  47,295  66,551  103,817 
Total expenses excluding interest expense  1,869,027  1,496,044  2,700,161  3,491,535 
Interest expense    434,636  853,832  1,324,413  101,955 
Total expenses    2,303,663  2,349,876  4,024,574  3,593,490 
Less fees waived by advisor    (719)  (674)  (828)  (27,344) 
Less fees paid indirectly    (396)  (344)  (1,203)  (4,536) 
Total expenses after fees waived and paid indirectly  2,302,548  2,348,858  4,022,543  3,561,610 
Net investment income    7,823,996  12,960,138  20,915,709  37,187,662 
Realized and Unrealized Gain (Loss)         
Net realized gain (loss) from:           
   Investments    (7,240,206)  (47,826,125)  (48,127,734)  (50,345,439) 
   Financial futures contracts and swaps  (875,528)  (3,732,047)  933,553  97,366 
   Foreign currency    1,854,695  531,200  1,465,026  6,159,464 
   TBA sale commitments    —  —  —  6,619,821 
    (6,261,039)  (51,026,972)  (45,729,155)  (37,468,788) 
Net change in unrealized appreciation/depreciation on:         
   Investments    (5,969,670)  (6,962,138)  (8,868,889)  (18,022,517) 
   Financial futures contracts and swaps  (190,796)  (898,237)  795,049  (132,057) 
   Foreign currency    (1,201,825)  (312,776)  (1,547,153)  (3,749,994) 
   Unfunded corporate loans    55,544  35,951  132,703  90,545 
    (7,306,747)  (8,137,200)  (9,488,290)  (21,814,023) 
Total realized and unrealized loss  (13,567,786)  (59,164,172)  (55,217,445)  (59,282,811) 
Net Decrease in Net Assets Resulting from Operations  $ (5,743,790)  $ (46,204,034)  $ (34,301,736)  $ (22,095,149) 
     1 See Note 9 of the Notes to Financial Statements for details of borrowings.         
See Notes to Financial Statements.         
40  ANNUAL REPORT  AUGUST 31, 2009     

Statements of Operations (concluded)     
                                     BlackRock  Blackrock 
  Senior Floating  Senior Floating 
Year Ended August 31, 2009  Rate Fund, Inc.  Rate Fund II, Inc. 
     Investment Income     
Net Investment income allocated from the Master LLC:     
   Interest  $ 21,423,940  $ 9,905,686 
   Income — affiliated  190,457  88,396 
   Facility and other fees  357,209  166,414 
   Expenses  (3,067,282)  (1,424,066) 
Total income  18,904,324  8,736,430 
     Expenses     
Administration  732,567  544,168 
Transfer agent  318,401  92,481 
Tender offer  128,900  69,871 
Professional  123,117  69,999 
Printing  67,628  38,412 
Registration  34,024  28,631 
Officer and Directors  1,257  584 
Miscellaneous  12,356  11,534 
Total expenses  1,418,250  855,680 
Net investment income  17,486,074  7,880,750 
     Realized and Unrealized Gain (Loss) Allocated from the Master LLC     
Net realized gain (loss) from investments, swaps and foreign currency  (34,004,504)  (15,895,082) 
Net change in unrealized appreciation/depreciation on investments, swaps, foreign currency and unfunded corporate loans  (11,952,665)  (4,973,635) 
Total realized and unrealized loss  (45,957,169)  (20,868,717) 
Net Decrease in Net Assets Resulting from Operations  $ (28,471,095)  $ (12,987,967) 
See Notes to Financial Statements.     
                                                         ANNUAL REPORT  AUGUST 31, 2009  41 

Statements of Changes in Net Assets  BlackRock Defined Opportunity Credit Trust (BHL) 
        Period 
        January 31, 
      Year Ended       20081 to 
      August 31,  August 31, 
Increase (Decrease) in Net Assets:    2009  2008 
     Operations         
Net investment income    $ 7,823,996  $ 4,088,383 
Net realized gain (loss)      (6,261,039)  641,116 
Net change in unrealized appreciation/depreciation    (7,306,747)  1,289,284 
Net increase (decrease) in net assets resulting from operations    (5,743,790)  6,018,783 
     Dividends and Distributions to Shareholders From       
Net investment income      (9,810,137)  (5,435,571) 
Tax return of capital      (88,324)  (481,911) 
Decrease in net assets resulting from dividends and distributions to shareholders    (9,898,461)  (5,917,482) 
     Capital Share Transactions       
Net proceeds from the issuance of shares    —  127,448,000 
Capital charges with respect to issuance of shares    —  (200,500) 
Reinvestment of dividends      809,153  224,341 
Net increase in net assets resulting from capital share transactions    809,153  127,471,841 
     Net Assets         
Total increase (decrease) in net assets    (14,833,098)  127,573,142 
Beginning of period      127,695,148  122,006 
End of period    $ 112,862,050  $ 127,695,148 
Distributions in excess of net investment income  $ (925,324)  $ (1,438,090) 
   1 Commencement of operations.       
    BlackRock Diversified Income Strategies Fund, Inc. (DVF) 
                       Year Ended 
                       August 31, 
Increase (Decrease) in Net Assets:    2009  2008 
     Operations         
Net investment income    $ 12,960,138  $ 19,628,678 
Net realized loss      (51,026,972)  (13,105,495) 
Net change in unrealized appreciation/depreciation    (8,137,200)  (28,460,128) 
Net decrease in net assets resulting from operations    (46,204,034)  (21,936,945) 
     Dividends and Distributions to Shareholders From       
Net investment income      (13,947,075)  (20,910,360) 
Tax return of capital      (2,882,990)  (443,389) 
Decrease in net assets resulting from dividends and distributions to shareholders    (16,830,065)  (21,353,749) 
     Capital Share Transactions       
Reinvestment of dividends      883,415  205,747 
     Net Assets         
Total decrease in net assets      (62,150,684)  (43,084,947) 
Beginning of year      169,707,079  212,792,026 
End of year    $ 107,556,395  $ 169,707,079 
Distributions in excess of net investment income  $ (710,207)  $ (175,645) 
See Notes to Financial Statements.       
42  ANNUAL REPORT             AUGUST 31, 2009     

Statements of Changes in Net Assets  BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) 
    Year Ended 
    August 31, 
Increase (Decrease) in Net Assets:    2009  2008 
     Operations       
Net investment income    $ 20,915,709  $ 26,533,760 
Net realized loss    (45,729,155)  (10,426,510) 
Net change in unrealized appreciation/depreciation    (9,488,290)  (26,845,871) 
Net decrease in net assets resulting from operations    (34,301,736)  (10,738,621) 
     Dividends to Shareholders From       
Net investment income    (23,842,077)  (28,321,303) 
     Capital Share Transactions       
Reinvestment of dividends    298,574  — 
     Net Assets       
Total decrease in net assets    (57,845,239)  (39,059,924) 
Beginning of year    295,004,803  334,064,727 
End of year    $ 237,159,564  $ 295,004,803 
Undistributed (distributions in excess of) net investment income    $ (786,997)  $ 848,640 
  BlackRock Limited Duration Income Trust (BLW) 
    Period   
    November 1,   
                               Year Ended  2007 to     Year Ended 
                               August 31,  August 31,   October 31, 
Increase (Decrease) in Net Assets:  2009  2008  2007 
     Operations       
Net investment income  $ 37,187,662  $ 41,919,013  $ 55,219,613 
Net realized gain (loss)  (37,468,788)  (24,118,166)  3,120,082 
Net change in unrealized appreciation/depreciation  (21,814,023)  (40,618,831)  (21,221,592) 
Net increase (decrease) in net assets resulting from operations  (22,095,149)  (22,817,984)  37,118,103 
     Dividends and Distributions to Shareholders From       
Net investment income  (42,793,064)  (43,898,690)  (51,967,739) 
Net realized gain  —  —  (2,229,742) 
Tax return of capital  —  —  (1,074,826) 
Decrease in net assets resulting from dividends and distributions to shareholders  (42,793,064)  (43,898,690)  (55,272,307) 
     Capital Share Transactions       
Reinvestment of dividends  —  —  2,057,525 
     Net Assets       
Total decrease in net assets  (64,888,213)  (66,716,674)  (16,096,679) 
Beginning of period  616,392,747  683,109,421  699,206,100 
End of period  $ 551,504,534  $ 616,392,747  $ 683,109,421 
Undistributed (distributions in excess of) net investment income  $ (2,953,716)  $ (3,360,775)  $ 800,386 
See Notes to Financial Statements.       
                                                         ANNUAL REPORT  AUGUST 31, 2009  43 

Statements of Changes in Net Assets  BlackRock Senior Floating Rate Fund, Inc. 
      Year Ended 
      August 31, 
Increase (Decrease) in Net Assets:    2009  2008 
     Operations         
Net investment income                                           $ 17,486,074  $ 26,675,323 
Net realized loss      (34,004,504)  (14,362,509) 
Net change in unrealized appreciation/depreciation    (11,952,665)  (18,260,695) 
Net decrease in net assets resulting from operations    (28,471,095)  (5,947,881) 
     Dividends to Shareholders From       
Net investment income      (17,470,993)  (26,664,539) 
     Capital Share Transactions       
Net decrease in net assets resulting from capital share transactions    (41,795,738)  (73,502,678) 
     Net Assets         
Total decrease in net assets      (87,737,826)  (106,115,098) 
Beginning of year      399,400,221  505,515,319 
End of year                                           $ 311,662,395  $ 399,400,221 
Undistributed net investment income                                         $ 1,249,054  $ 168,069 
    BlackRock Senior Floating Rate Fund II, Inc. 
      Year Ended 
      August 31, 
Increase (Decrease) in Net Assets:    2009  2008 
     Operations         
Net investment income                                           $ 7,880,750  $ 12,299,609 
Net realized loss      (15,895,082)  (6,857,340) 
Net change in unrealized appreciation/depreciation    (4,973,635)  (8,921,385) 
Net decrease in net assets resulting from operations    (12,987,967)  (3,479,116) 
     Dividends to Shareholders From       
Net investment income      (8,332,675)  (12,294,014) 
     Capital Share Transactions       
Net decrease in net assets resulting from capital share transactions    (14,969,362)  (45,450,688) 
     Net Assets         
Total decrease in net assets      (36,290,004)  (61,223,818) 
Beginning of year      186,637,049  247,860,867 
End of year                                           $ 150,347,045  $ 186,637,049 
Undistributed net investment income                                         $ 113,729  $ 85,109 
See Notes to Financial Statements.       
44  ANNUAL REPORT  AUGUST 31, 2009     

Statements of Cash Flows         
    BlackRock  BlackRock  BlackRock 
  BlackRock       Diversified  Floating Rate  Limited 
         Defined  Income         Income  Income 
  Opportunity       Strategies  Strategies  Duration 
  Credit Trust       Fund, Inc.  Fund, Inc.  Trust 
August 31, 2009  (BHL)           (DVF)  (FRA)  (BLW) 
     Cash Provided by Operating Activities         
Net decrease in net assets resulting from operations  $ (5,743,790)  $ (46,204,034)  $ (34,301,736)  $ (22,095,149) 
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided         
by operating activities:         
     Decrease in interest receivable — unaffiliated  538,756  1,582,682  1,533,481  5,225,321 
     Increase in dividend receivable  —  —  —  (554) 
     Increase in interest receivable — affiliated  (241)  —  —  — 
     Decrease in swap receivable  141,449  291,066  3,166  49,870 
     Increase in margin variation receivable  —  —  —  (6,789) 
     (Increase) decrease in prepaid expenses  (47,766)  (37,477)  (76,763)  9,674 
     Increase in other assets  (105,630)  (81,512)  (38,928)  (163,711) 
     Increase (decrease) in other liabilities  —  399,955  (221,688)  — 
     Decrease in investment advisor payable  (22,954)  (71,270)  (85,740)  (80,497) 
     Decrease in interest expense payable  (116,002)  (30,952)  (37,892)  (178,414) 
     Decrease in other affiliates payable  (405)  (784)  (1,109)  (2,334) 
     Increase (decrease) in accrued expenses payable  17,425  32,780  47,709  (16,300) 
     Decrease in swaps payable  (38,414)  (717,602)  (16,980)  (14,232) 
     Increase in officers and directors payable  15  153  272  31,915 
     Swap premium received  234,740  50,673  600,834  575,252 
     Swap premium paid  (259,956)  (272,513)  (1,838,750)  (169,500) 
     Net realized and unrealized gain  14,132,122  55,925,734  58,346,253  65,900,247 
     Amortization of premium and discount on investments  (2,296,304)  (868,065)  (2,813,385)  (2,550,465) 
     Paid-in-kind Income  (22,566)  (969,233)  (1,164,458)  (1,556,888) 
     Cash collateral on swaps  —  (1,600,000)  100,000  — 
Proceeds from sales and paydowns of long-term securities  76,235,530  108,732,811  209,126,755  1,854,428,848 
Purchases of long-term securities  (63,427,541)  (56,652,968)  (139,581,244)  (1,699,772,959) 
Net proceeds (purchases) from sales of short-term investments  3,770,645  3,220,827  (383,710)  (94,471,566) 
Cash provided by operating activities  22,989,113  62,730,271  89,196,087  105,141,769 
     Cash Used for Financing Activities         
Cash receipts from borrowings  50,000,000  39,000,000  122,000,000  17,601,456 
Cash payments from borrowings  (61,500,000)  (86,500,000)  (185,500,000)  (82,138,964) 
Cash dividends paid to shareholders  (9,189,746)  (16,127,334)  (23,613,150)  (42,904,068) 
Increase in bank overdraft  —  —  43,905  — 
Cash used for financing activities  (20,689,746)  (63,627,334)  (87,069,245)  (107,441,576) 
     Cash Impact from Foreign Exchange Fluctuations         
Cash impact from foreign exchange fluctuations  3,605  6,456  71,755  55,449 
     Cash         
Net increase (decrease) in cash  2,302,972  (890,607)  2,198,597  (2,244,358) 
Cash and foreign currency at beginning of year.  256,484  1,009,763  1,277,556  2,303,744 
Cash and foreign currency at end of year  $ 2,559,456  $ 119,156  $ 3,476,153  $ 59,386 
     Cash Flow Information         
Cash paid for interest  $ 550,638  $ 884,784  $ 1,362,305  $ 280,369 
A Statement of Cash Flows is presented when a Fund has a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average 
total assets.         
See Notes to Financial Statements.         
                                                         ANNUAL REPORT    AUGUST 31, 2009  45 

Financial Highlights   BlackRock Defined Opportunity Credit Trust (BHL) 
        Period 
        January 31, 
    Year Ended  20081 to 
    August 31,  August 31, 
      2009  2008 
     Per Share Operating Performance       
Net asset value, beginning of period  $ 14.31  $ 14.332 
Net investment income3      0.87  0.47 
Net realized and unrealized gain (loss)    (1.55)  0.21 
Net increase (decrease) from investment operations    (0.68)  0.68 
Dividends and distributions from:       
   Net investment income      (1.09)  (0.62) 
   Tax return of capital      (0.01)  (0.06) 
Total dividends and distributions    (1.10)  (0.68) 
Capital charges with respect to issuance of shares    —  (0.02) 
Net asset value, end of period    $ 12.53  $ 14.31 
Market price, end of period    $ 11.03  $ 12.66 
     Total Investment Return4         
Based on net asset value      (2.16)%  4.79%5 
Based on market price      (2.65)%  (11.44)%5 
     Ratios to Average Net Assets       
Total expenses      2.39%  1.78%6 
Total expenses after fees waived and paid indirectly and excluding interest expense    1.94%  1.48%6 
Net investment income      8.11%  5.52%6 
     Supplemental Data         
Net assets, end of period (000)  $ 112,862  $ 127,695 
Borrowings outstanding, end of period (000)  $ 27,000  $ 38,500 
Average borrowings outstanding, during the period (000)  $ 31,141  $ 13,788 
Portfolio turnover      41%  18% 
Asset coverage, end of period per $1,000  $ 5,180  $ 4,317 
   1 Commencement of operations.       
   2 Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from initial offering price of $15.00 per share.     
   3 Based on average shares outstanding.       
   4 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.   
       Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.     
   5 Aggregate total investment return.       
   6 Annualized.         
See Notes to Financial Statements.       
46  ANNUAL REPORT  AUGUST 31, 2009     

Financial Highlights  BlackRock Diversified Income Strategies Fund, Inc. (DVF) 
            Period 
            January 31, 
            20051 to 
    Year Ended August 31,      August 31, 
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of period  $ 13.94  $ 17.50  $ 18.70  $ 18.38  $ 19.10 
Net investment income2  1.06  1.61  1.83    1.77  0.84 
Net realized and unrealized gain (loss)  (4.88)  (3.41)  (1.23)    0.25  (0.77) 
Net increase (decrease) from investment operations  (3.82)  (1.80)  0.60    2.02  0.07 
Dividends and distributions from:             
   Net investment income  (1.14)  (1.72)  (1.80)    (1.70)  (0.75) 
   Tax return of capital  (0.24)  (0.04)  —    —  — 
Total dividends and distributions  (1.38)  (1.76)  (1.80)    (1.70)  (0.75) 
Capital charges with respect to issuance of shares  —  —  —         (0.00)3  (0.04) 
Net asset value, end of period  $ 8.74  $ 13.94  $ 17.50  $ 18.70  $ 18.38 
Market price, end of period  $ 8.80  $ 12.77  $ 17.16  $ 18.85  $ 17.53 
     Total Investment Return4             
Based on net asset value  (23.82)%  (10.17)%  3.00%    11.99%  0.42%5 
Based on market price  (16.27)%  (16.08)%  0.19%    18.36%  (8.53)%5 
     Ratios to Average Net Assets             
Total expenses  2.47%  2.77%  3.66%    3.17%  2.48%6 
Total expenses after fees waived and paid indirectly  2.47%  2.77%  3.66%    3.17%  2.20%6 
Total expenses after fees waived and paid indirectly and excluding interest expense  1.57%  1.23%  1.30%    1.29%  1.00%6 
Net investment income  13.63%  10.40%  9.63%    9.57%  7.88%6 
     Supplemental Data             
Net assets, end of period (000)  $ 107,556  $ 169,707  $ 212,792  $ 224,156  $ 219,748 
Borrowings outstanding, end of period (000)  $ 18,000  $ 65,500  $ 72,000  $ 88,800  $ 101,400 
Average borrowings outstanding, during the period (000)  $ 28,247  $ 64,335  $ 95,465  $ 86,132  $ 75,543 
Portfolio turnover  45%  41%  72%    64%  17% 
Asset coverage, end of period per $1,000  $ 6,975  $ 3,591  $ 3,955  $ 3,524  $ 3,167 
   1 Commencement of operations.             
   2 Based on average shares outstanding.             
   3 Amount is less than $(0.01) per share.             
   4 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.   
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.       
   5 Aggregate total investment return.             
   6 Annualized.             
See Notes to Financial Statements.             
                                                         ANNUAL REPORT    AUGUST 31, 2009    47 

Financial Highlights  BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) 
      Year Ended August 31,     
    2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 16.12  $ 18.25  $ 19.32  $ 19.35  $ 19.16 
Net investment income1    1.14  1.45  1.54    1.40  1.23 
Net realized and unrealized gain (loss)  (3.04)  (2.03)  (1.07)    (0.06)  0.08 
Net increase (decrease) from investment operations  (1.90)  (0.58)  0.47    1.34  1.31 
Dividends and distributions from:             
   Net investment income    (1.29)  (1.55)  (1.54)    (1.37)  (1.11) 
   Net realized gain    —  —  —    —  (0.01) 
Total dividends and distributions  (1.29)  (1.55)  (1.54)    (1.37)  (1.12) 
Net asset value, end of year    $ 12.93  $ 16.12  $ 18.25  $ 19.32  $ 19.35 
Market price, end of year    $ 12.26  $ 14.49  $ 16.70  $ 17.49  $ 17.85 
     Total Investment Return2               
Based on net asset value    (8.88)%  (2.56)%  2.74%    7.92%  7.27% 
Based on market price    (3.88)%  (4.28)%  3.85%    5.91%  (2.47)% 
     Ratios to Average Net Assets             
Total expenses    1.96%  2.61%  3.33%    2.54%  2.18% 
Total expenses after fees waived and paid indirectly  1.96%  2.60%  3.33%    2.54%  2.18% 
Total expenses after fees waived and paid indirectly and excluding interest expense  1.31%  1.18%  1.20%    1.14%  1.22% 
Net investment income    10.18%  8.49%  7.88%    7.30%  6.34% 
     Supplemental Data               
Net assets, end of year (000)    $ 237,160  $ 295,005  $ 334,065  $ 353,713  $ 354,114 
Borrowings outstanding, end of year (000)  $ 38,000  $ 101,500  $ 107,000  $ 135,200  $ 123,600 
Average borrowings outstanding, during the year (000)  $ 50,591  $ 102,272  $ 133,763  $ 101,916  $ 117,702 
Portfolio turnover    58%  49%  69%    57%  48% 
Asset coverage, end of year per $1,000  $ 7,241  $ 3,906  $ 4,122  $ 3,616  $ 3,865 
   1 Based on average shares outstanding.             
   2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.   
       Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.       
See Notes to Financial Statements.             
48  ANNUAL REPORT    AUGUST 31, 2009       

Financial Highlights      BlackRock Limited Duration Income Trust (BLW) 
    Period           
    November 1,           
  Year Ended  2007 to           
  August 31,  August 31,    Year Ended October 31,   
  2009  2008  2007  2006    2005  2004 
Per Share Operating Performance               
Net asset value, beginning of period  $ 16.71  $ 18.52  $ 19.01  $ 19.17  $ 20.13  $ 19.74 
Net investment income  1.011  1.141  1.50  1.35    1.46  1.46 
Net realized and unrealized gain (loss)  (1.61)  (1.76)  (0.49)  0.03    (0.94)  0.43 
Net increase (decrease) from investment operations  (0.60)  (0.62)  1.01  1.38    0.52  1.89 
Dividends and distributions from:               
   Net investment income  (1.16)  (1.19)  (1.41)  (1.52)    (1.33)  (1.49) 
   Net realized gain  —  —  (0.06)  —    (0.15)  (0.01) 
   Tax return of capital  —  —  (0.03)  (0.02)    —  — 
Total dividends and distributions  (1.16)  (1.19)  (1.50)  (1.54)    (1.48)  (1.50) 
Net asset value, end of period  $ 14.95  $ 16.71  $ 18.52  $ 19.01  $ 19.17  $ 20.13 
Market price, end of period  $ 14.09  $ 14.57  $ 16.68  $ 18.85  $ 17.48  $ 19.95 
Total Investment Return2               
Based on net asset value  (1.57)%  (2.60)%3  5.66%  7.85%    2.93%  10.17% 
Based on market price  6.40%  (5.70)%3  (4.03)%  17.31%    (5.30)%  14.64% 
Ratios to Average Net Assets               
Total expenses  0.72%  1.39%4  2.16%  2.20%    1.71%  1.26% 
Total expenses after fees waived and before fees paid indirectly  0.71%  1.39%4  2.16%  2.20%    1.71%  1.28% 
Total expenses after fees waived and paid indirectly  0.71%  1.38%4  2.14%  2.19%    1.71%  1.25% 
Total expenses after fees waived and paid indirectly and               
   excluding interest expense  0.69%  0.76%4  0.83%  0.91%    0.92%  0.90% 
Net investment income  7.42%  7.84%4  7.92%  7.10%    7.42%  7.34% 
Supplemental Data               
Net assets, end of period (000)  $ 551,505  $ 616,393  $ 638,109  $ 699,206  $ 704,961  $ 739,225 
Borrowings outstanding, end of period (000)  $ —  $ 64,538  $ 109,287  $ 220,000  $ 176,010  $ 159,416 
Average borrowings outstanding, during the period (000)  $ 11,705  $ 120,295  $ 172,040  $ 179,366  $ 186,660  $ 195,845 
Portfolio turnover  287%5  191%6  65%  132%    70%  215% 
Asset coverage, end of period per $1,000  $ —  $ 10,551  $ 7,251  $ 4,178  $ 5,005  $ 5,637 
   1 Based on average shares outstanding.               
   2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.   
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.       
   3 Aggregate total investment return.               
   4 Annualized.               
   5 Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 79%.         
   6 Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 24%.           
See Notes to Financial Statements.               
                                                         ANNUAL REPORT      AUGUST 31, 2009    49 

Financial Highlights        BlackRock Senior Floating Rate Fund, Inc. 
        Year Ended August 31,     
      2009  2008  2007    2006  2005 
Per Share Operating Performance               
Net asset value, beginning of year  $ 7.98  $ 8.60  $ 8.92  $ 9.01  $ 8.91 
Net investment income1      0.39  0.51  0.60    0.52  0.37 
Net realized and unrealized gain (loss)    (0.83)  (0.62)  (0.32)    (0.08)  0.10 
Net increase (decrease) from investment operations    (0.44)  (0.11)  0.28    0.44  0.47 
Dividends from net investment income    (0.38)  (0.51)  (0.60)    (0.53)  (0.37) 
Net asset value, end of year    $ 7.16  $ 7.98  $ 8.60  $ 8.92  $ 9.01 
     Total Investment Return2                 
Based on net asset value      (4.69)%  (1.32)%3  3.07%    4.97%  5.38% 
     Ratios to Average Net Assets4               
Total expenses      1.53%  1.28%3  1.44%    1.43%  1.41% 
Net investment income      5.97%  6.16%  6.67%    5.84%  4.11% 
     Supplemental Data                 
Net assets, end of year (000)    $ 311,662  $ 399,400  $ 505,515  $ 601,807  $ 676,703 
Portfolio turnover for the Master LLC    47%  56%  46%    54%  53% 
   1 Based on average shares outstanding.               
   2 Where applicable, total investment returns exclude the early withdrawal charge, but do include the reinvestment of dividends and distributions. The Fund is a continuously offered 
       closed-end fund, the shares of which are offered at net asset value. No secondary market for the Fund’s shares exists.         
   3 During the year ended August 31, 2008, the Fund recorded a refund related to overpayments of prior years’ tender offer fees, which increased net investment income per 
       share $0.02 and increased total investment return 0.24%. The expense ratio excluding the refund was 1.46%.           
   4 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income.             
See Notes to Financial Statements.               
50  ANNUAL REPORT      AUGUST 31, 2009       

Financial Highlights      BlackRock Senior Floating Rate Fund II, Inc. 
      Year Ended August 31,     
    2009  2008  2007    2006  2005 
     Per Share Operating Performance               
Net asset value, beginning of year  $ 8.67  $ 9.35  $ 9.70  $ 9.79  $ 9.67 
Net investment income1    0.41  0.54  0.63    0.56  0.39 
Net realized and unrealized gain (loss)    (0.89)  (0.69)  (0.34)    (0.10)  0.11 
Net increase (decrease) from investment operations    (0.48)  (0.15)  0.29    0.46  0.50 
Dividends from net investment income    (0.43)  (0.53)  (0.64)    (0.55)  (0.38) 
Net asset value, end of year  $ 7.76  $ 8.67  $ 9.35  $ 9.70  $ 9.79 
     Total Investment Return2               
Based on net asset value    (4.70)%  (1.61)%3  2.89%    4.90%  5.26% 
     Ratios to Average Net Assets4               
Total expenses    1.68%  1.50%3  1.59%    1.57%  1.54% 
Net investment income    5.79%  5.96%  6.53%    5.70%  4.03% 
     Supplemental Data               
Net assets, end of year (000)  $ 150,347  $ 186,637  $ 247,861  $ 322,202  $ 355,108 
Portfolio turnover for the Master LLC    47%  56%  46%    54%  53% 
   1 Based on average shares outstanding.               
   2 Where applicable, total investment returns exclude the early withdrawal charge, but do include the reinvestment of dividends and distributions. The Fund is a continuously offered 
       closed-end fund, the shares of which are offered at net asset value. No secondary market for the Fund’s shares exists.         
   3 During the year ended August 31, 2008, the Fund recorded a refund related to overpayments of prior years’ tender offer fees, which increased net investment income per 
       share $0.02 and increased total investment return 0.11%. The expense ratio excluding the refund was 1.64%.           
   4 Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment income.             
See Notes to Financial Statements.               
                                                         ANNUAL REPORT      AUGUST 31, 2009    51 

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock Defined Opportunity Credit Trust (“BHL”), BlackRock Diversified
Income Strategies Fund, Inc. (“DVF”), BlackRock Floating Rate Income
Strategies Fund, Inc. (“FRA”), BlackRock Limited Duration Income Trust
(“BLW”), BlackRock Senior Floating Rate Fund, Inc. (“Senior Floating Rate”)
and BlackRock Senior Floating Rate Fund II, Inc. (“Senior Floating Rate II”)
(collectively, referred to as the “Funds” or individually as the “Fund”) are
registered under the Investment Company Act of 1940, as amended (the
“1940 Act”). BHL and BLW are organized as Delaware Statutory trusts. DVF,
FRA, Senior Floating Rate and Senior Floating Rate II are organized as
Maryland corporations. BHL, DVF, FRA and BLW are registered as diversi-
fied, closed-end management investment companies. Senior Floating Rate
and Senior Floating Rate II are registered as continuously offered, non-
diversified, closed-end management investment companies. The Funds’
financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America, which may require the
use of management accruals and estimates. Actual results may differ from
these estimates. The Boards of Directors and the Boards of Trustees of the
Funds are referred to throughout this report as the “Board of Directors” or
the “Board.” The Funds determine and make available for publication the
net asset value of their shares on a daily basis.

Prior to its commencement of operations on January 31, 2008, BHL had
no operations other than those relating to organizational matters and the
sale of 8,517 shares on November 13, 2007 to BlackRock Advisors, LLC
(the “Manager”), the Funds’ investment advisor, an indirect, wholly owned
subsidiary of BlackRock, Inc. (“BlackRock”), for $122,006. BHL will termi-
nate no later than December 31, 2017.

Senior Floating Rate and Senior Floating Rate II seek to achieve their
investment objectives by investing all their assets in the Master Senior
Floating Rate LLC (the “Master LLC”), which has the same investment
objective and strategies as these Funds. The value of each Fund’s invest-
ment in the Master LLC reflects each Fund’s proportionate interest in the
net assets of the Master LLC. The performance of each Fund is directly
affected by the performance of the Master LLC. The financial statements of
the Master LLC, including the Schedule of Investments, are included else-
where in this report and should be read in conjunction with Senior Floating
Rate and Senior Floating Rate II’s financial statements. The percentage of
the Master LLC owned by Senior Floating Rate and Senior Floating Rate II
at August 31, 2009 was 67% and 33%, respectively.

The following is a summary of significant accounting policies followed by
the Funds:

Valuation of Investments: The Funds value their bond investments on the
basis of last available bid prices or current market quotations provided by
dealers or pricing services selected under the supervision of each Fund’s
Board. Floating rate loan interests are valued at the mean between the last
available bid prices from one or more brokers or dealers as obtained from a
pricing service. In determining the value of a particular investment, pricing
services may use certain information with respect to transactions in

such investments, quotations from dealers, pricing matrixes, market trans-
actions in comparable investments, various relationships observed in the
market between investments and calculated yield measures based on
valuation technology commonly employed in the market for such invest-
ments. The fair value of asset-backed and mortgage-backed securities
are estimated based on models that consider the estimated cash flows
of each tranche of the entity, establishes a benchmark yield and develops
an estimated tranche specific spread to the benchmark yield based on
the unique attributes of the tranche. Financial futures contracts traded on
exchanges are valued at their last sale price. To be announced (“TBA”)
commitments are valued at the current market value of the underlying
securities. Swap agreements are valued utilizing quotes received daily by
the Funds’ pricing service or through brokers, which are derived using daily
swap curves and trades of underlying securities. Investments in open-end
investment companies are valued at net asset value each business day.
Short-term securities with maturities less than 60 days may be valued
at amortized cost, which approximates fair value. The Funds value their
investments in Cash Sweep Series of BlackRock Liquidity Series, LLC at
fair value, which is ordinarily based upon their pro rata ownership in the
net assets of the underlying fund.

Equity investments traded on a recognized securities exchange or the
NASDAQ Global Market System are valued at the last reported sale price
that day or the NASDAQ official closing price, if applicable. For equity
investments traded on more than one exchange, the last reported sale
price on the exchange where the stock is primarily traded is used. Equity
investments traded on a recognized exchange for which there were no
sales on that day are valued at the last available bid price. If no bid price
is available, the prior day’s price will be used, unless it is determined that
such prior day’s price no longer reflects the fair value of the security.

Exchange-traded options are valued at the mean between the last bid and
ask prices at the close of the options market in which the options trade.
An exchange-traded option for which there is no mean price is valued at
the last bid price. If no bid price is available, the prior day’s price will be
used, unless it is determined that such prior day’s price no longer reflects
the fair value of the option. Over-the-counter options and swaptions are
valued by an independent pricing service using a mathematical model
which incorporates a number of market data factors, such as the trades
and prices of the underlying securities.

In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or are not available, the investment will
be valued by a method approved by the Board as reflecting fair value
(“Fair Value Assets”). When determining the price for Fair Value Assets, the
investment advisor and/or sub-advisor seeks to determine the price that
each Fund might reasonably expect to receive from the current sale of that
asset in an arm’s-length transaction. Fair value determinations shall be
based upon all available factors that the investment advisor and/or sub-
advisor deems relevant. The pricing of all Fair Value Assets is subsequently
reported to the Board or a committee thereof.

52 ANNUAL REPORT AUGUST 31, 2009

Notes to Financial Statements (continued)

Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of business on the New York Stock
Exchange (“NYSE”). The values of such securities used in computing the
net assets of each Fund are determined as of such times. Foreign currency
exchange rates will be determined as of the close of business on the
NYSE. Occasionally, events affecting the values of such securities and such
exchange rates may occur between the times at which they are determined
and the close of business on the NYSE that may not be reflected in the
computation of each Fund’s net assets. If events (for example, a company
announcement, market volatility or a natural disaster) occur during such
periods that are expected to materially affect the value of such securities,
those securities will be valued at their fair value as determined in good
faith by the Board or by the investment advisor using a pricing service
and/or procedures approved by the Board. Foreign currency exchange
contracts are valued at the mean between the bid and ask prices. Inter-
polated values are derived when the settlement date of the contract is
an interim date for which quotations are not available.

Senior Floating Rate and Senior Floating Rate II record their investments in
the Master LLC at fair value. Valuation of securities held by the Master LLC
is discussed in Note 1 of the Master LLC’s Notes to Financial Statements,
which are included elsewhere in this report.

Effective September 1, 2008, the Senior Floating Rate and Senior Floating
Rate II implemented Financial Accounting Standards Board Statement
of Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures
about the use of fair value measurements. Various inputs are used in
determining the fair value of investments, which are as follows:

• Level 1 — price quotations in active markets/exchanges for identical
securities

• Level 2 — other observable inputs (including, but not limited to: quoted
prices for similar assets or liabilities in markets that are active, quoted
prices for identical or similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for the
assets or liabilities (such as interest rates, yield curves, volatilities, pre-
payment speeds, loss severities, credit risks and default rates) or other
market-corroborated inputs

• Level 3 — unobservable inputs based on the best information available
in the circumstances, to the extent observable inputs are not available
(including the Funds’ own assumptions used in determining the fair
value of investments)

The inputs or methodology used for valuing securities are not neces-
sarily an indication of the risk associated with investing in those
securities.

The following table summarizes the inputs used as of August 31, 2009
in determining the fair valuation of the Funds’ investments:

  Senior Floating  Senior Floating 
  Rate  Rate II 
  Investment in  Investment in 
Valuation Inputs  the Master LLC  the Master LLC 
Level 1  —  — 
Level 2  $312,548,298  $ 150,735,659 
Level 3  —  — 
Total  $312,548,298  $ 150,735,659 

Foreign Currency Transactions: Foreign currency amounts are translated
into United States dollars on the following basis: (i) market value of
investment securities, assets and liabilities at the current rate of exchange;
and (ii) purchases and sales of investment securities, income and
expenses at the rates of exchange prevailing on the respective dates of
such transactions.

The Funds report foreign currency related transactions as components of
realized gains for financial reporting purposes, whereas such components
are treated as ordinary income for federal income tax purposes.

Asset-Backed and Mortgage-Backed Securities: Certain Funds may invest
in asset-backed securities. Asset-backed securities are generally issued as
pass-through certificates, which represent undivided fractional ownership
interests in an underlying pool of assets, or as debt instruments, which
are also known as collateralized obligations, and are generally issued as
the debt of a special purpose entity organized solely for the purpose of
owning such assets and issuing such debt. Asset-backed securities are
often backed by a pool of assets representing the obligations of a number
of different parties. The yield characteristics of certain asset-backed securi-
ties may differ from traditional debt securities. One such major difference
is that all or a principal part of the obligations may be prepaid at any time
because the underlying assets (i.e., loans) may be prepaid at any time. As
a result, a decrease in interest rates in the market may result in increases
in the level of prepayments as borrowers, particularly mortgagors, refinance
and repay their loans. An increased prepayment rate with respect to an
asset-backed security subject to such a prepayment feature will have the
effect of shortening the maturity of the security. If a Fund has purchased
such an asset-backed security at a premium, a faster than anticipated
prepayment rate could result in a loss of principal to the extent of the
premium paid.

The Funds may purchase certain mortgage pass-through securities. There
are a number of important differences among the agencies and instrumen-
talities of the US Government that issue mortgage related securities and
among the securities that they issue. For example, mortgage-related securi-
ties guaranteed by the Government National Mortgage Association
(“GNMA”) are guaranteed as to the timely payment of principal and interest
by GNMA and such guarantee is backed by the full faith and credit of the
United States. However, mortgage-related securities issued by the Federal
Home Loan Mortgage Corporation (“FHLMC”) and Federal National
Mortgage Association (“FNMA”) include FNMA guaranteed Mortgage
Pass-Through Certificates, which are solely the obligations of the FNMA,

ANNUAL REPORT AUGUST 31, 2009 53

Notes to Financial Statements (continued)

are not backed by or entitled to the full faith and credit of the United
States and are supported by the right of the issuer to borrow from
the Treasury.

Certain Funds invest a significant portion of their assets in securities
backed by commercial or residential mortgage loans or in issuers that hold
mortgage and other asset-backed securities. Please see the Schedules of
Investments for these securities. Changes in economic conditions, including
delinquencies and/or defaults on assets underlying these securities, can
affect the value, income and/or liquidity of such positions.

Forward Commitments, When-Issued and Delayed Delivery Securities:
Certain Funds may purchase securities on a when-issued basis and may
purchase or sell securities on a forward commitment basis. Settlement of
such transactions normally occurs within a month or more after the pur-
chase or sale commitment is made. The Funds may purchase securities
under such conditions only with the intention of actually acquiring them,
but may enter into a separate agreement to sell the securities before the
settlement date. Since the value of securities purchased may fluctuate prior
to settlement, the Funds may be required to pay more at settlement than
the security is worth. In addition, the purchaser is not entitled to any of the
interest earned prior to the settlement. When purchasing a security on a
delayed delivery basis, the Funds assume the rights and risks of ownership
of the security, including the risk of price and yield fluctuations. In the event
of default by the counterparty, the Funds’ maximum amount of loss is the
unrealized gain of the commitment, which is shown on the Schedule of
Investments, if any.

Preferred Stock: Certain Funds may invest in preferred stocks. Preferred
stock has a preference over common stock in liquidation (and generally
in receiving dividends as well) but is subordinated to the liabilities of the
issuer in all respects. As a general rule, the market value of preferred stock
with a fixed dividend rate and no conversion element varies inversely with
interest rates and perceived credit risk, while the market price of convert-
ible preferred stock generally also reflects some element of conversion
value. Because preferred stock is junior to debt securities and other obliga-
tions of the issuer, deterioration in the credit quality of the issuer will cause
greater changes in the value of a preferred stock than in a more senior
debt security with similar stated yield characteristics. Unlike interest
payments on debt securities, preferred stock dividends are payable only if
declared by the issuer’s board of directors. Preferred stock also may be
subject to optional or mandatory redemption provisions.

Floating Rate Loans: Certain Funds may invest in floating rate loans,
which are generally non-investment grade, made by banks, other financial
institutions and privately and publicly offered corporations. Floating rate
loans are senior in the debt structure of a corporation. Floating rate loans
generally pay interest at rates that are periodically determined by reference
to a base lending rate plus a premium. The base lending rates are gener-
ally (i) the lending rate offered by one or more European banks, such as
LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one
or more US banks or (iii) the certificate of deposit rate. The Funds consider

these investments to be investments in debt securities for purposes of their
investment policies.

The Funds earn and/or pay facility and other fees on floating rate loans.
Other fees earned/paid include commitment, amendment, consent, com-
missions and prepayment penalty fees. Facility, amendment and consent
fees are typically amortized as premium and/or accreted as discount
over the term of the loan. Commitment, commission and various other fees
are recorded as income. Prepayment penalty fees are recognized on the
accrual basis. When a Fund buys a floating rate loan it may receive a
facility fee and when it sells a floating rate loan it may pay a facility fee.
On an ongoing basis, the Funds may receive a commitment fee based on
the undrawn portion of the underlying line of credit portion of a floating
rate loan. In certain circumstances, the Funds may receive a prepayment
penalty fee upon the prepayment of a floating rate loan by a borrower.
Other fees received by the Funds may include covenant waiver fees and
covenant modification fees.

The Funds may invest in multiple series or tranches of a loan. A
different series or tranche may have varying terms and carry different
associated risks.

Floating rate loans are usually freely callable at the issuer’s option. The
Funds may invest in such loans in the form of participations in loans
(“Participations”) and assignments of all or a portion of loans from third
parties. Participations typically will result in the Funds having a contractual
relationship only with the lender, not with the borrower. The Funds will have
the right to receive payments of principal, interest and any fees to which
it is entitled only from the lender selling the Participation and only upon
receipt by the lender of the payments from the borrower.

In connection with purchasing Participations, the Funds generally will have
no right to enforce compliance by the borrower with the terms of the loan
agreement relating to the loans, nor any rights of offset against the bor-
rower, and the Funds may not benefit directly from any collateral supporting
the loan in which it has purchased the Participation.

As a result, the Funds will assume the credit risk of both the borrower and
the lender that is selling the Participation. The Funds’ investments in loan
participation interests involve the risk of insolvency of the financial interme-
diaries who are parties to the transactions. In the event of the insolvency
of the lender selling the Participation, the Funds may be treated as general
creditor of the lender and may not benefit from any offset between the
lender and the borrower.

Mortgage Dollar Roll Transactions: Certain Funds may sell mortgage-
backed securities and simultaneously contract to repurchase substantially
similar (same type, coupon and maturity) securities on a specific future
date at an agreed upon price. During the period between the sale
and the repurchase, the Funds will not be entitled to receive interest and
principal payments on the securities sold. The Funds account for dollar roll
transactions as purchases and sales and realize gains and losses on these
transactions.

54 ANNUAL REPORT AUGUST 31, 2009

Notes to Financial Statements (continued)

Mortgage dollar rolls involve the risk that the market value of the securities
that each Fund is required to purchase may decline below the agreed
upon repurchase price of those securities. If investment performance of
securities purchased does not exceed that of the securities sold as part
of the dollar roll, the use of this technique will adversely impact the
investment performance of each Fund.

Reverse Repurchase Agreements: Certain Funds may enter into reverse
repurchase agreements with qualified third party broker-dealers. In a
reverse repurchase agreement, the Funds sell securities to a bank or
broker-dealer and agree to repurchase the securities at a mutually agreed
upon date and price. Interest on the value of the reverse repurchase
agreements issued and outstanding is based upon competitive market
rates determined at the time of issuance. The Funds may utilize reverse
repurchase agreements when it is anticipated that the interest income
to be earned from the investment of the proceeds of the transaction is
greater than the interest expense of the transaction. Reverse repurchase
agreements involve leverage risk and also the risk that the market value
of the securities that the Funds are obligated to repurchase under the
agreement may decline below the repurchase price. In the event the buyer
of securities under a reverse repurchase agreement files for bankruptcy or
becomes insolvent, the Funds’ use of the proceeds from the agreement
may be restricted while the other party, or its trustee or receiver, determine
whether or not to enforce the Funds’ obligation to repurchase the securities.

TBA Commitments: Certain Funds may enter into TBA commitments to pur-
chase or sell securities for a fixed price at a future date. TBA commitments
are considered securities in themselves, and involve a risk of loss if the
value of the security to be purchased or sold declines or increases prior
to settlement date, which is in addition to the risk of decline in the value
of the Funds’ other assets.

Segregation and Collateralization: In cases in which the 1940 Act and the
interpretive positions of the Securities and Exchange Commission (“SEC”)
require that a Fund either delivers collateral or segregates assets in con-
nection with certain investments (e.g., dollar rolls, TBA’s beyond normal
settlement, foreign currency exchange contracts, financial futures contracts
and swaps), or certain borrowings (e.g., reverse repurchase agreements)
each Fund will, consistent with SEC rules and/or certain interpretive letters
issued by the SEC, segregate collateral or designate on its books and
records cash or other liquid securities having a market value at least
equal to the amount that would otherwise be required to be physically seg-
regated. Furthermore, based on requirements and agreements with certain
exchanges and third party broker-dealers, each party has requirements to
deliver/deposit securities as collateral for certain investments (e.g., finan-
cial futures contracts, reverse repurchase agreements and swaps). As part
of these agreements, when the value of these investments achieves a previ-
ously agreed upon value (minimum transfer amount), each party may be
required to deliver additional collateral.

Investment Transactions and Investment Income: For financial reporting
purposes, certain Funds’ investment transactions are recorded on the

dates the transactions are entered into (the trade dates). Realized gains
and losses on security transactions are determined on the identified cost
basis. Dividend income is recorded on the ex-dividend dates. Dividends
from foreign securities where the ex-dividend date may have passed are
subsequently recorded when the Funds have determined the ex-dividend
date. Interest income is recognized on the accrual basis. The Funds
amortize all premiums and discounts on debt securities.

Senior Floating Rate and Senior Floating Rate II record daily their propor-
tionate share of the Master LLC’s income, expenses and realized and unre-
alized gains and losses. In addition, both Funds accrue their own expenses.

Dividends and Distributions: Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates. If the total dividends and distributions made in any
tax year exceeds net investment income and accumulated realized capital
gains, a portion of the total distribution may be treated as a tax return
of capital.

Income Taxes: It is each Fund’s policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies
and to distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax laws, a withholding tax may be imposed on interest, dividends
and capital gains at various rates.

Each Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Funds’ US federal tax returns remains open for the two periods
ended August 31, 2009 for BHL, the four years ended August 31, 2009
for DVF, FRA, Senior Floating Rate and Senior Floating Rate II, and the two
years ended October 31, 2007 and the two periods ended August 31,
2009 for BLW. The statutes of limitations on the Funds’ state and local
tax returns may remain open for an additional year depending upon
the jurisdiction.

Recent Accounting Pronouncement: In June 2009, Statement of Financial
Accounting Standards No. 166, “Accounting for Transfers of Financial Assets
— an amendment of FASB Statement No. 140” (“FAS 166”), was issued.
FAS 166 is intended to improve the relevance, representational faithfulness
and comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows;
and a transferor’s continuing involvement, if any, in transferred financial
assets. FAS 166 is effective for financial statements issued for fiscal years
and interim periods beginning after November 15, 2009. Earlier application
is prohibited. The recognition and measurement provisions of FAS 166
must be applied to transfers occurring on or after the effective date.
Additionally, the disclosure provisions of FAS 166 should be applied to
transfers that occurred both before and after the effective date of FAS 166.
The impact of FAS 166 on the Funds’ statement disclosures, if any, is cur-
rently being assessed.

ANNUAL REPORT AUGUST 31, 2009 55

Notes to Financial Statements (continued)

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by each
Fund’s Board, non-interested Directors (“Independent Directors”) may defer
a portion of their annual complex-wide compensation. Deferred amounts
earn an approximate return as though equivalent dollar amounts have
been invested in common shares of other certain BlackRock Closed-End
Funds selected by the Independent Directors. This has approximately the
same economic effect for the Independent Directors as if the Independent
Directors had invested the deferred amounts directly in other certain
BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of each
Fund. Each Fund may, however, elect to invest in Common Shares of other
certain BlackRock Closed-End Funds selected by the Independent Directors
in order to match its deferred compensation obligations. Investments to
cover each Fund’s deferred compensation liability, if any, are included in
other assets in the Statements of Assets and Liabilities. Dividends and
distributions from the BlackRock Closed-End Fund investments under the
plan are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Fund are charged to that Fund. Other
operating expenses shared by several funds are pro rated among those
funds on the basis of relative net assets or other appropriate methods.
Pursuant to the terms of the custody agreement, custodian fees may be
reduced by amounts calculated on uninvested cash balances, which are
shown on the Statements of Operations as fees paid indirectly.

2. Derivative Financial Instruments:

The Funds may engage in various portfolio investment strategies both to
increase the returns of the Funds and to economically hedge, or protect,
their exposure to certain risks such as credit risk, equity risk, interest rate
risk and foreign currency exchange rate risk. Losses may arise if the value
of the contract decreases due to an unfavorable change in the value of
the underlying security or if the counterparty does not perform under the
contract. The Funds may mitigate counterparty risk through master netting
agreements included within an International Swap and Derivatives
Association, Inc. (“ISDA”) Master Agreement between a Fund and each of
its counterparties. The ISDA Master Agreement allows each Fund to offset
with its counterparty certain derivative financial instruments’ payables
and/or receivables with collateral held with each counterparty. The amount
of collateral moved to/from applicable counterparties is based upon mini-
mum transfer amounts of up to $500,000. To the extent amounts due to
the Funds from their counterparties are not fully collateralized contractually
or otherwise, the Funds bear the risk of loss from counterparty non-perform-
ance. See Note 1 “Segregation and Collateralization” for information with
respect to collateral practices.

The Funds’ maximum risk of loss from counterparty credit risk on over-the-
counter derivatives is generally the aggregate unrealized gain in excess of

any collateral pledged by the counterparty to the Funds. For over-the-
counter purchased options, the Funds bear the risk of loss in the amount
of the premiums paid and change in market value of the options should
the counterparty not perform under the contracts. Options written by
the Funds do not give rise to counterparty credit risk, as written options
obligate the Funds to perform and not the counterparty. Certain ISDA Master
Agreements allow counterparties to over-the-counter derivatives to terminate
derivative contracts prior to maturity in the event a Fund’s net assets decline
by a stated percentage or a Fund fails to meet the terms of its ISDA Master
Agreements, which would cause the Fund to accelerate payment of any net
liability owed to the counterparty. Counterparty risk related to exchange-
traded financial futures contracts and options is minimal because of the
protection against defaults provided by the exchange on which they trade.

Financial Futures Contracts: Certain Funds may purchase or sell financial
futures contracts and options on financial futures contracts to gain expo-
sure to, or economically hedge against, changes in interest rates (interest
rate risk) or foreign currencies (foreign currency exchange rate risk).
Financial futures contracts are contracts for delayed delivery of securities
at a specific future date and at a specific price or yield. Pursuant to the
contract, the Funds agree to receive from or pay to the broker an amount
of cash equal to the daily fluctuation in value of the contract. Such receipts
or payments are known as margin variation and are recognized by the
Funds as unrealized gains or losses. When the contract is closed, the
Funds record a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time
it was closed. The use of financial futures transactions involves the risk of
an imperfect correlation in the movements in the price of financial futures
contracts, interest rates and the underlying assets.

Foreign Currency Exchange Contracts: Certain Funds may enter into foreign
currency exchange contracts as an economic hedge against either specific
transactions or portfolio positions (foreign currency exchange rate risk). A
foreign currency exchange contract is an agreement between two parties to
buy and sell a currency at a set exchange rate on a future date. Foreign
currency exchange contracts, when used by a Fund, help to manage the
overall exposure to the foreign currency backing some of the investments
held by a Fund. The contract is marked-to-market daily and the change in
market value is recorded by a Fund as an unrealized gain or loss. When the
contract is closed, a Fund records a realized gain or loss equal to the dif-
ference between the value at the time it was opened and the value at the
time it was closed. The use of foreign currency exchange contracts involves
the risk that counterparties may not meet the terms of the agreement or
unfavorable movements in the value of a foreign currency relative to the
US dollar.

Options: Certain Funds may purchase and write call and put options to
increase or decrease their exposure to underlying instruments. A call option
gives the purchaser of the option the right (but not the obligation) to buy,
and obligates the seller to sell (when the option is exercised), the underlying

56 ANNUAL REPORT AUGUST 31, 2009

Notes to Financial Statements (continued)

instrument at the exercise price at any time or at a specified time during
the option period. A put option gives the holder the right to sell and obli-
gates the writer to buy the underlying instrument at the exercise price at
any time or at a specified time during the option period. When a Fund pur-
chases (writes) an option, an amount equal to the premium paid (received)
by a Fund is reflected as an asset (liability) and an equivalent liability
(asset). The amount of the asset (liability) is subsequently marked-to-mar-
ket to reflect the current market value of the option purchased
(written). When an instrument is purchased or sold through an exercise of
an option, the related premium paid (or received) is added to (or deducted
from) the basis of the instrument acquired or deducted from (or added to)
the proceeds of the instrument sold. When an option expires (or a Fund
enters into a closing transaction), a Fund realizes a gain or loss on the
option to the extent of the premiums received or paid (or gain or loss to
the extent the cost of the closing transaction exceeds the premium
received or paid). When a Fund writes a call option, such option is “cov-
ered,” meaning that a Fund holds the underlying instrument subject to
being called by the option counterparty, or cash in an amount sufficient to
cover the obligation. When a Fund writes a put option, such option is cov-
ered by cash in an amount sufficient to cover the obligation.

In purchasing and writing options, a Fund bears the risk of an unfavorable
change in the value of the underlying instrument or the risk that the Fund
may not be able to enter into a closing transaction due to an illiquid mar-
ket. Exercise of a written put option could result in a Fund purchasing a
security at a price different from the current market value. The Funds may
execute transactions in both listed and over-the-counter options.

Swaps: Certain Funds may enter into swap agreements, in which a Fund
and a counterparty agree to make periodic net payments on a specified
notional amount. These periodic payments received or made by the Funds
are recorded in the Statements of Operations as realized gains or losses,
respectively. Swaps are marked-to-market daily and changes in value are
recorded as unrealized appreciation (depreciation). When the swap is ter-
minated, the Fund will record a realized gain or loss equal to the difference
between the proceeds from (or cost of) the closing transaction and the
Fund’s basis in the contract, if any. Swap transactions involve, to varying
degrees, elements of interest rate, credit and market risk in excess of the
amounts recognized on the Statements of Assets and Liabilities. Such risks
involve the possibility that there will be no liquid market for these agree-
ments, that the counterparty to the agreements may default on its obliga-
tion to perform or disagree as to the meaning of the contractual terms in
the agreements, and that there may be unfavorable changes in interest
rates and/or market values associated with these transactions.

• Credit default swaps — Certain Funds may enter into credit default
swaps to manage their exposure to the market or certain sectors of
the market, to reduce their risk exposure to defaults of corporate
and/or sovereign issuers or to create exposure to corporate and/or sov-
ereign issuers to which they are not otherwise exposed (credit risk). The
Funds enter into credit default agreements to provide a measure of

protection against the default of an issuer (as buyer of protection)
and/or gain credit exposure to an issuer to which they are not other-
wise exposed (as seller of protection). The Fund may either buy or
sell (write) credit default swaps on single-name issuers (corporate or
sovereign) or traded indexes. Credit default swaps on single-name
issuers are agreements in which the buyer pays fixed periodic payments
to the seller in consideration for a guarantee from the seller to make a
specific payment should a negative credit event take place (e.g., bank-
ruptcy, failure to pay, obligation accelerators, repudiation, moratorium or
restructuring). Credit default swaps on traded indexes are agreements
in which the buyer pays fixed periodic payments to the seller in consid-
eration for a guarantee from the seller to make a specific payment
should a write-down, principal or interest shortfall or default of all or
individual underlying securities included in the index occurs. As a buyer,
a Fund will either receive from the seller an amount equal to the
notional amount of the swap and deliver the referenced security or
underlying securities comprising of an index or receive a net settlement
of cash equal to the notional amount of the swap less the recovery
value of the security or underlying securities comprising of an index. As
a seller (writer), a Fund will either pay the buyer an amount equal to the
notional amount of the swap and take delivery of the referenced secu-
rity or underlying securities comprising of an index or pay a net settle-
ment of cash equal to the notional amount of the swap less the
recovery value of the security or underlying securities comprising
of an index.

• Interest rate swaps — Certain Funds may enter into interest rate swaps
to manage duration, the yield curve or interest rate risk by economically
hedging the value of the fixed rate bonds which may decrease when
interest rates rise (interest rate risk). Interest rate swaps are agreements
in which one party pays a floating rate of interest on a notional princi-
pal amount and receives a fixed rate of interest on the same notional
principal amount for a specified period of time. Interest rate floors,
which are a type of interest rate swap, are agreements in which one
party agrees to make payments to the other party to the extent that
interest rates fall below a specified rate or floor in return for a premium.
In more complex swaps, the notional principal amount may decline
(or amortize) over time.

• Swaptions — Swap options (swaptions) are similar to options on securi-
ties except that instead of selling or purchasing the right to buy or sell a
security, the writer or purchaser of the swap option is granting or buying
the right to enter into a previously agreed upon interest rate swap
agreement at any time before the expiration of the option (interest rate
risk). In purchasing and writing swaptions, the Funds bear the market
risk of an unfavorable change in the price of the underlying interest rate
swap or the risk that the Funds may not be able to enter into a closing
transaction due to an illiquid market. Exercise of a written swaption
could result in the Funds entering into an interest rate swap at a price
different from the current market value. The Funds execute transactions
in over-the-counter swaptions.


Notes to Financial Statements (continued)             
     Derivatives Not Accounted for as Hedging Instruments under Financial Accounting Standards Board Statement of Financial Accounting Standards No. 133, Accounting for 
     Derivative Instruments and Hedging Activities:               
    Values of Derivative Instruments as of August 31, 2009*         
    Asset Derivatives             
Statements of Assets
    and Liabilities Location    BHL    DVF  FRA  BLW 
     Interest rate contracts                           Net unrealized appreciation/depreciation  —    —  —  $ 22,078** 
     Foreign currency exchange contracts                           Unrealized appreciation on foreign             
                             currency exchange contracts  $ 10,965  $ 2,622  $ 27,341  36,788 
     Credit contracts                           Unrealized appreciation on swaps    —    11,300  —  — 
     Equity contracts                           Investments at value — unaffiliated    —    13,000  20,000  46,000 
     Total    $ 10,965  $ 26,922  $ 47,341  $ 104,866 
    Liability Derivatives             
Statements of Assets
    and Liabilities Location    BHL    DVF  FRA  BLW 
     Interest rate contracts                           Unrealized depreciation on swaps    —  $1,751,189  —  — 
     Foreign exchange contracts                           Unrealized depreciation on foreign             
                             currency exchange contracts  $ 231,252    95,339  $ 406,733  $ 541,854 
     Credit contracts                           Unrealized depreciation on swaps    —    2,403,117  1,108,878  83,859 
     Total    $ 231,252  $4,249,645  $1,515,611  $ 625,713 
     *   For open derivative instruments as of August 31, 2009, see the Schedules of Investments, which is also indicative of activity for the year ended August 31, 2009. 
   **   Includes cumulative appreciation/depreciation of the financial futures contracts as reported in Schedules of Investments. Only current day’s margin variation is reported within the 
   Statements of Assets & Liabilities.               
    The Effect of Derivative Instruments on the Statements of Operations       
    Year Ended August 31, 2009             
    Net Realized Gain (Loss) From Derivatives Recognized in Income         
        BHL    DVF  FRA  BLW 
     Credit contracts:               
  Swaps    $ (875,528)  $(1,879,082)  $ 933,553  $ (570,536) 
     Foreign currency exchange contracts:               
  Foreign currency exchange contracts      1,692,962    697,705  2,255,357  6,193,595 
     Interest contracts:               
  Financial futures contracts      —    —  —  667,902 
  Swaps      —  (1,852,965)  —  — 
     Total    $ 817,434  $(3,034,342)  $3,188,910  $ 6,290,961 
                                                                   Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized in Income     
        BHL    DVF  FRA  BLW 
     Credit contracts:               
  Swaps    $ (190,796)  $ (991,052)  $ 795,049  $ (21,853) 
     Equity contracts:               
  Options      —    (8,970)  (13,800)  (31,740) 
     Foreign currency exchange contracts:               
  Foreign currency exchange contracts    (1,105,948)    (340,969)  (1,660,349)  (3,837,217) 
     Interest contracts:               
  Financial futures contracts      —    —  —  (110,204) 
  Swaps      —    92,815  —  — 
     Total    $ (1,296,744)  $(1,248,176)  $ (879,100)  $(4,001,014) 
58                                               ANNUAL REPORT      AUGUST 31, 2009     

Notes to Financial Statements (continued)

3. Investment Advisory Agreement and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America
Corporation (“BAC”) are the largest stockholders of BlackRock. BAC
became a stockholder of BlackRock following its acquisition of Merrill
Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date,
both PNC and Merrill Lynch were considered affiliates of the Funds under
the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but
due to the restructuring of Merrill Lynch’s ownership interest of BlackRock,
BAC is not deemed to be an affiliate under the 1940 Act.

BHL, DVF, FRA and BLW has entered into an Investment Advisory Agreement
or an Administration Agreement with the Manager to provide investment
advisory and/or administration services.

The Manager is responsible for the management of each Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Fund. For such services,
BHL pays a monthly fee at an annual rate of 1.00%, BLW pays a monthly
fee at an annual rate of 0.55% and DVF and FRA each pay a monthly fee
at an annual rate of 0.75% of the average daily value of each Fund’s net
assets plus the proceeds of any outstanding borrowings.

The Manager, on behalf of BHL, DVF, FRA and BLW, has entered into a
separate sub-advisory agreement with BlackRock Financial Management,
Inc. (“BFM”), an affiliate of the Manager, under which the Manager pays
BFM, for services it provides, a monthly fee that is an annual percentage
of the investment advisory fee paid by the Funds to the Manager.

The Manager has agreed to waive its advisory fees by the amount of
investment advisory fees each Fund pays to the Manager indirectly through
its investment in affiliated money market funds. These amounts are shown
as fees waived by advisor in the Statements of Operations.

For the year ended August 31, 2009, the Funds reimbursed the Manager
for certain accounting services, which are included in accounting services
in the Statements of Operations. The reimbursements were as follows:

  Accounting 
  Services 
BHL  $ 2,463 
DVF  $ 2,278 
FRA  $ 4,935 
BLW  $10,348 

Merrill Lynch, Pierce, Fenner & Smith, Incorporated (“MLPF&S”), a
wholly owned subsidiary of Merrill Lynch, received underwriting fees of
$3,462,804 from January 31, 2008 to August 31, 2008 in connection with
the issuance of the BHL’s Shares. In addition, BHL reimbursed MLPF&S
$46,000 as a partial reimbursement of expenses incurred in connection
with the issuance of the Fund’s Shares.

Senior Floating Rate and Senior Floating Rate II have entered into an
Administration Agreement with the Manager. The administration fee paid
to the Manager is calculated daily and paid monthly based on an annual

rate of 0.25% and 0.40%, respectively, of the average daily value of these
Fund’s net assets for the performance of administrative services (other
than investment advice and related portfolio activities) necessary for the
operation of these Funds.

Senior Floating Rate and Senior Floating Rate II entered into a separate
Distribution Agreement and Distribution Plan with BlackRock Investments,
LLC (“BRIL”), which replaced FAM Distributors, Inc. (“FAMD”) and BlackRock
Distributors, Inc. and its affiliates (“BDI”) (collectively, the “Distributor”)
as the sole distributor of the Funds. FAMD is a wholly owned subsidiary of
Merrill Lynch Group, Inc. BIL and BDI are affiliates of BlackRock.

For the year ended August 31, 2009, the Distributor received early with-
drawal charges for Senior Floating Rate and Senior Floating Rate II in the
amount of $181,726 and $31,438, respectively, relating to the tender of
each Fund’s shares.

PNC Global Investment Servicing (U.S.) Inc., an indirect, wholly owned
subsidiary of PNC and an affiliate of the Manager, is the transfer agent
and dividend disbursing agent for Senior Floating Rate and Senior Floating
Rate II. Transfer agency fees borne by the Funds are comprised of those
fees charged for all shareholder communications including mailing of
shareholder reports, dividend and distribution notices, and proxy materials
for shareholder meetings, as well as per account and per transaction fees
related to servicing and maintenance of shareholder accounts, including
the issuing, redeeming and transferring of shares, check writing, anti-money
laundering services, and customer identification services.

Senior Floating Rate and Senior Floating Rate II may earn income on posi-
tive cash balances in demand deposit accounts that are maintained by the
transfer agent on behalf of the Funds. These amounts are included in
income — affiliated in the Statements of Operations.

Certain officers and/or directors of the Funds are officers and/or
directors of BlackRock or its affiliates. The Funds reimburse the Manager
for compensation to the Funds’ Chief Compliance Officer.

4. Investments:

Purchases and sales (including paydowns and TBA and mortgage dollar
roll transactions and excluding short-term securities and US Government
securities) for the year ended August 31, 2009 were as follows:

  Purchases  Sales 
BHL  $ 53,338,515  $ 79,414,735 
DVF  $ 57,843,776  $ 108,701,709 
FRA  $ 150,946,266  $ 212,820,811 
BLW  $1,712,915,647  $1,835,126,323 

For the year ended August 31, 2009, purchases and sales of US govern-
ment securities for BLW were $0 and $23,000,000, respectively.

For the year ended August 31, 2009, purchases and sales for BLW
attributable to mortgage dollar rolls were $1,240,666,602 and
$1,368,558,242, respectively.

ANNUAL REPORT AUGUST 31, 2009 59

Notes to Financial Statements (continued)           
5. Income Tax Information:             
Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to 
reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The 
following permanent differences as of August 31, 2009 attributable to amortization methods on fixed income securities, accounting for swap agreements, 
foreign currency transactions, the reclassification of distributions, the expiration of capital loss carryforwards and the classification of investments were 
reclassified to the following accounts:             
            Senior  Senior 
            Floating Rate  Floating Rate 
    BHL  DVF  FRA  BLW  Fund  Fund II 
Paid-in capital    —  —  —  —  $(64,746,799)  $(1,546,632) 
Undistributed (distributions in excess of) net investment income  $ 2,498,907  $ 452,375  $ 1,290,731  $ 6,012,461  $ 1,065,904  $ 480,545 
Accumulated net realized loss    $(2,498,907)  $(452,375)  $(1,290,731)  $(6,012,461)  $ 63,680,895  $ 1,066,087 
The tax character of distributions paid during the fiscal years ended October 31, 2007, the fiscal period ended August 31, 2008 and the fiscal years ended 
August 31, 2008 and August 31, 2009 were as follows:             
            Senior  Senior 
            Floating Rate  Floating Rate 
    BHL  DVF  FRA  BLW  Fund  Fund II 
Ordinary income               
   8/31/2009    $ 9,810,137  $13,947,075  $23,842,077  $42,793,064  $17,470,993  $ 8,332,675 
   8/31/2008    5,435,571  20,910,360  28,321,303  —  26,664,539  12,294,014 
   11/01/2007 – 8/31/2008  —  —  —  43,898,690    — 
   10/31/2007    —  —  —  51,967,739  —   
Long-term capital gains               
   10/31/2007    —  —  —  $ 2,229,742  —  — 
Tax return of capital               
   8/31/2009    $ 88,324  $ 2,882,990  —  —  —  — 
   8/31/2008    481,911  443,389  —  —  —  — 
   10/31/2007    —  —  —  $ 1,074,826  —  — 
Total distributions               
   8/31/2009    $ 9,898,461  $16,830,065  $23,842,077  $42,793,064  $17,470,993  $ 8,332,675 
   8/31/2008    $ 5,917,482  $21,353,749  $28,321,303  —  $26,664,539  $12,294,014 
   11/01/2007 – 8/31/2008  —  —  —  $43,898,690  —  — 
   10/31/2007    —  —  —  $55,272,307  —  — 
As of August 31, 2009, the tax components of accumulated net losses were as follows:         
            Senior  Senior 
            Floating Rate  Floating Rate 
    BHL  DVF  FRA  BLW  Fund  Fund II 
Undistributed ordinary income    —  —  $ 619,326  $ 786,625  $ 1,277,797  $ 106,666 
Capital loss carryforward    $ (1,063,204)  $ (25,687,627)  (22,121,314)  (31,930,795)  (282,849,718)  (37,618,235) 
Net unrealized losses*    (13,885,511)  (96,331,698)  (90,836,739)  (118,693,400)  (84,591,948)  (39,273,673) 
Total accumulated net losses    $(14,948,715)  $(122,019,325)  $(112,338,727)  $(149,837,570)  $(366,163,869)  $(76,785,242) 
* The differences between book-basis and tax-basis net unrealized losses is attributable primarily to the tax deferral of losses on wash sales, the difference between book and tax 
for premiums and discounts on fixed income securities, book/tax differences in the accrual of income on securities in default, the realization for tax purposes of unrealized gains 
/(losses) on certain futures and foreign currency contracts, the timing and recognition of partnership income, the accounting for swap agreements, the classification of investments, 
       the deferral of post-October currency and capital losses for tax purposes and the deferral of compensation to Trustees.       
As of August 31, 2009, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates: 
            Senior  Senior 
            Floating Rate  Floating Rate 
Expires    BHL  DVF  FRA  BLW  Fund  Fund II 
2010    —  —  —  —  $ 87,904,309  $ 864,375 
2011    —  —  —  —  53,409,203  17,719,049 
2012    —  —  —  —  34,221,818  6,383,383 
2013    —  —  $ 691,829  —  56,166,095  — 
2014    —  $ 1,755,694  —  —  945,546  — 
2015    —  2,237,399  —  —  2,561,691  — 
2016    —  1,444,704  475,453  $21,933,927  31,419,599  4,923,144 
2017    $1,063,204  20,249,830  20,954,032  9,996,868  16,221,457  7,728,284 
Total    $1,063,204  $25,687,627  $22,121,314  $31,930,795  $282,849,718  $37,618,235 
60  ANNUAL REPORT      AUGUST 31, 2009     

Notes to Financial Statements (continued)

6. Market and Credit Risk:

In the normal course of business, the Funds invest in securities and enter
into transactions where risks exist due to fluctuations in the market (market
risk) or failure of the issuer of a security to meet all its obligations (credit
risk). The value of securities held by the Funds may decline in response
to certain events, including those directly involving the issuers whose secu-
rities are owned by the Funds; conditions affecting the general economy;
overall market changes; local, regional or global political, social or eco-
nomic instability; and currency and interest rate and price fluctuations.
Similar to credit risk, the Funds may be exposed to counterparty risk,
or the risk that an entity with which the Funds have unsettled or open
transactions may default. Financial assets, which potentially expose the
Funds to credit and counterparty risks, consist principally of investments
and cash due from counterparties. The extent of the Funds’ exposure to
credit and counterparty risks with respect to these financial assets is
approximated by their value recorded in the Funds’ Statements of Assets
and Liabilities.

7. Capital Share Transactions:

BHL and BLW are authorized to issue an unlimited number of shares, par
value $0.001, all of which were initially classified as Common Shares. DVF
and FRA are authorized to issue 200 million shares, par value $0.10, all of
which were initially classified as Common Shares. The Board is authorized,
however, to classify and reclassify any unissued shares without approval of
Common Shareholders.

Shares issued and outstanding for the year ended August 31, 2009 
and the period ended August 31, 2008 (and the year ended October 31, 
2007 for BLW) increased by the following amounts as a result of dividend 
reinvestments:       
  Year Ended  Period Ended  Year Ended 
  August 31,  August 31,  October 31, 
  2009  2008  2007 
BHL  84,923  15,264  — 
DVF  129,277  13,892  — 
FRA  31,791  —  — 
BLW  —  —  107,367 
At August 31, 2009, the shares owned by an affiliate of the Manager of the 
Funds were as follows:       
      Shares 
BHL      8,517 
FRA      7,877 
BLW      6,021 
BHL’s shares issued and outstanding during the period January 31, 
2008 (commencement of operations) to August 31, 2008 increased 
by 8,900,000 from shares sold. Organization costs of $22,000 were 
expensed upon the commencement of operations. Offering costs incurred 
in connection with BHL’s offering of Common Shares have been charged 
against the proceeds from the initial Common Share offering in the amount 
of $200,500.       

Transactions in capital shares, with respect to Senior Floating Rate and Senior Floating Rate II, were as follows:     
  Year Ended    Year Ended 
  August 31, 2009  August 31, 2008 
Senior Floating Rate  Shares  Amount  Shares       Amount 
Shares sold  3,495,709  $22,066,554  4,490,899  $ 36,601,922 
Shares issued to shareholders in reinvestment of dividends  189,466  1,198,984  182,375  1,499,356 
Total issued  3,685,175  23,265,538  4,673,274  38,101,278 
Shares tendered  (10,231,989)  (65,061,276)  (13,412,544)  (111,603,956) 
Net decrease  (6,546,814)  $(41,795,738)  (8,739,270)  $ (73,502,678) 
  Year Ended    Year Ended 
  August 31, 2009  August 31, 2008 
Senior Floating Rate II  Shares  Amount  Shares       Amount 
Shares sold  3,475,221  $23,697,009  2,834,064  $ 25,451,600 
Shares issued to shareholders in reinvestment of dividends         
and distributions  83,856  580,777  41,005  365,615 
Total issued  3,559,077  24,277,786  2,875,069  25,817,215 
Shares tendered  (5,697,156)  (39,247,148)  (7,873,162)  (71,267,903) 
Net decrease  (2,138,079)  $(14,969,362)  (4,998,093)  $ (45,450,688) 

8. Commitments:

The Funds may invest in floating rate loans. In connection with these
investments, the Funds may also enter into unfunded corporate loans
(“commitments”). Commitments may obligate the Funds to furnish tem-
porary financing to a borrower until permanent financing can be arranged.

In connection with these commitments, the Funds earn a commitment
fee, typically set as a percentage of the commitment amount. Such fee
income, which is classified in the Statements of Operations as facility and
other fees, is recognized ratably over the commitment period. As of August
31, 2009, the Funds had the following unfunded loan commitments:

ANNUAL REPORT AUGUST 31, 2009 61

Notes to Financial Statements (concluded) 
Borrower       
      Value of 
  Unfunded  Underlying 
  Commitment    Loans 
BHL  (000)    (000) 
Big West Oil, LLC  $ 442  $ 407 
NV Broadcasting, LLC  $ 179  $ 177 
Smurfit-Stone Container Enterprises, Inc.  $ 506  $ 483 
DVF       
Big West Oil, LLC  $ 363  $ 333 
Smurfit-Stone Container Enterprises, Inc.  $ 298  $ 286 
FRA       
Big West Oil, LLC  $ 233  $ 214 
Smurfit-Stone Container Enterprises, Inc.  $ 805  $ 769 
Vought Aircraft Industries, Inc.  $ 1,148  $ 1,074 
BLW       
Big West Oil, LLC  $ 724  $ 666 
NV Broadcasting, LLC  $ 90  $ 89 
Smurfit-Stone Container Enterprises, Inc.  $ 904  $ 864 
ProtoStar Ltd.  $ 529  $ 529 
9. Borrowings:       
On May 16, 2008, DVF and FRA renewed their revolving credit and security 
Agreements (“Citicorp Agreement”) pursuant to a commercial paper asset 
securitization program with Citicorp North America, Inc. (“Citicorp”), as 
Agent, certain secondary backstop lenders and certain asset securitization 
conduits, as lenders (the “Lenders”). The agreement was renewed for one 
year and at the time of renewal had maximum limits as follows:   
    Maximum Limit 
DVF    $ 91,000,000 
FRA    $155,000,000 
Under the Citicorp Agreement, the conduits funded advances to each Fund 
through the issuance of highly rated commercial paper. Each Fund had 
granted a security interest in substantially all of its assets to, and in favor 
of, the Lenders as security for its obligations to the Lenders. The interest 
rate on each Fund’s borrowings was based on the interest rate carried by 
the commercial paper plus a program fee. In addition, each Fund paid a 
liquidity fee to the secondary backstop lenders and the agent. Under the 
Citicorp Agreement, the Funds were subject to certain conditions and 
covenants, which included among other things limitations on asset declines 
over prescribed time periods. As a result of the decline in net assets attrib- 
utable to market conditions, certain terms of the facility were renegotiated 
effective December 5, 2008, which included waivers of certain financial 
covenants by the Lenders, an increase in program and liquidity fees under 
the facility and a reduction of the maximum limits.     
On March 5, 2009, DVF and FRA terminated their revolving credit agree- 
ment with Citicorp and entered into a senior committed secured, 364-day 
revolving line of credit and a separate security agreement (the “SSB 
Agreement”) with State Street Bank and Trust Company (“SSB”). The SSB 
Agreement has the same maximum limits as the renegotiated limits under 
the Citigroup Agreement and are as follows:       
    Maximum Limit 
DVF    $ 50,000,000 
FRA    $103,000,000 

The Funds have granted a security interest in substantially all of its assets 
to SSB.   
Advances are made by SSB to the Funds, at the Funds’ option (a) the higher 
of 1.0% above the Fed Effective Rate or 1.0% above the Overnight LIBOR 
Rate and (b) 1.0% above 7-day, 30-day, or 60-day LIBOR Rate. In addition, 
the Funds pay a facility fee and a commitment fee based upon SSBs total 
commitment to the Funds. The fees associated with each of the agreements 
are included in the Statements of Operations as borrowing costs. Advances 
to the Funds as of August 31, 2009 are shown in the Statements of Assets 
and Liabilities as loan payable.   
BHL is a party to a senior committed secured, 364-day revolving line of 
credit and a separate security agreement (the “BHL Agreement”) with SSB 
dated April 9, 2008. The Agreement has a maximum limit of $67.5 million. 
BHL has granted a security interest in substantially all of its assets to SSB. 
BHL renewed its revolving line of credit and security agreement with SSB 
effective April 8, 2009. The renewed agreement expires March 4, 2010 and 
the maximum commitment was reduced to $55 million.   
The Funds may not declare dividends or make other distributions on shares 
or purchase any such shares if, at the time of the declaration, distribution 
or purchase, asset coverage with respect to the outstanding short term bor- 
rowings is less than 300%.   
For the year ended August 31, 2009, the daily weighted average interest 
rates for funds with loans under the revolving credit agreement were 
as follows:   
  Daily Weighted 
  Average 
  Interest Rate 
BHL  1.40% 
DVF  3.02% 
FRA  2.63% 
For the year ended August 31, 2009, the daily weighted average interest 
rates for funds with reverse repurchase agreements were as follows: 
  Daily Weighted 
  Average 
  Interest Rate 
BLW  0.87% 
10. Subsequent Events:   
The Funds paid a net investment income dividend on September 30, 2009 
to shareholders of record on September 15, 2009 as follows:   
  Common 
  Dividend 
  Per Share 
BHL  $0.0600 
DVF  $0.0785 
FRA  $0.0815 
BLW  $0.0700 
Management’s evaluation of the impact of all subsequent events on the 
Funds’ financial statements was completed through October 30, 2009, the 
date the financial statements were issued.   

62 ANNUAL REPORT AUGUST 31, 2009

Report of Independent Registered Public Accounting Firm

To the Shareholders and Boards of Directors/Trustees of:
BlackRock Defined Opportunity Credit Trust
BlackRock Diversified Income Strategies Fund, Inc.
BlackRock Floating Rate Income Strategies Fund, Inc.
BlackRock Limited Duration Income Trust
BlackRock Senior Floating Rate Fund, Inc.
BlackRock Senior Floating Rate Fund II, Inc.:

We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock Defined Opportunity
Credit Trust as of August 31, 2009, and the related statements of opera-
tions and cash flows for the year then ended, the statements of changes in
net assets for the year then ended and the period January 31, 2008 (com-
mencement of operations) to August 31, 2008, and the financial highlights
for the year then ended and the period January 31, 2008 to August 31,
2008. We have also audited the accompanying statement of assets and
liabilities, including the schedule of investments, of BlackRock Diversified
Income Strategies Fund, Inc. as of August 31, 2009, and the related state-
ments of operations and cash flows for the year then ended, the state-
ments of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the four years in the period
then ended and the period January 31, 2005 (commencement of opera-
tions) to August 31, 2005. We have also audited the accompanying state-
ment of assets and liabilities, including the schedule of investments, of
BlackRock Floating Rate Income Strategies Fund, Inc. as of August 31,
2009, and the related statements of operations and cash flows for the year
then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. We have also audited the accompany-
ing statement of assets and liabilities, including the schedule of invest-
ments, of BlackRock Limited Duration Income Trust as of August 31, 2009,
and the related statements of operations and cash flows for the year then
ended, the statements of changes in net assets for the year then ended,
the period November 1, 2007 to August 31, 2008, and the year ended
October 31, 2007, and the financial highlights for the year then ended, the
period November 1, 2007 to August 31, 2008, and four years in the period
ended October 31, 2007. We have also audited the accompanying state-
ments of assets and liabilities of BlackRock Senior Floating Rate Fund, Inc.
and BlackRock Senior Floating Rate Fund II, Inc. as of August 31, 2009,
and the related statements of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended. BlackRock Defined Opportunity Credit Trust, BlackRock
Diversified Income Strategies Fund, Inc., BlackRock Floating Rate Income
Strategies Fund, Inc., BlackRock Limited Duration Income Trust, BlackRock
Senior Floating Rate Fund, Inc., and BlackRock Senior Floating Rate Fund
II, Inc. are collectively referred to as the “Funds.” These financial statements
and financial highlights are the responsibility of the Funds’ management.
Our responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free
of material misstatement. The Funds are not required to have, nor were we
engaged to perform, audits of their internal control over financial reporting.
Our audits included consideration of internal control over financial report-
ing as a basis for designing audit procedures that are appropriate

in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and signifi-
cant estimates made by management, as well as evaluating the overall
financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2009, by correspondence with the
custodian and financial intermediaries; where replies were not received
from financial intermediaries, we performed other auditing procedures.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
BlackRock Defined Opportunity Credit Trust as of August 31, 2009, the
results of its operations and its cash flows for the year then ended, changes
in its net assets for the year then ended and the period January 31, 2008
to August 31, 2008, and the financial highlights for the year then ended
and the period January 31, 2008 to August 31, 2008, in conformity with
accounting principles generally accepted in the United States of America.
Additionally, in our opinion, the financial statements and financial high-
lights referred to above present fairly, in all material respects, the finan-
cial position of BlackRock Diversified Income Strategies Fund, Inc. as of
August 31, 2009, the results of its operations and its cash flows for the
year then ended, changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years
in the period then ended and the period January 31, 2005 to August 31,
2005, in conformity with accounting principles generally accepted in the
United States of America. Additionally, in our opinion, the financial state-
ments and financial highlights referred to above present fairly, in all mate-
rial respects, the financial position of BlackRock Floating Rate Income
Strategies Fund, Inc. as of August 31, 2009, the results of its operations
and its cash flows for the year then ended, changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended, in conformity with
accounting principles generally accepted in the United States of America
Additionally, in our opinion, the financial statements and financial high-
lights referred to above present fairly, in all material respects, the financial
position of BlackRock Limited Duration Income Trust as of August 31,
2009, and the results of its operations and its cash flows for the year
then ended, changes in its net assets for the year then ended, the period
November 1, 2007 to August 31, 2008, and the year ended October 31,
2007, and the financial highlights for the year then ended, the period
November 1, 2007 to August 31, 2008, and four years in the period
ended October 31, 2007, in conformity with accounting principles gen-
erally accepted in the United States of America. Additionally, in our opinion,
the financial statements and financial highlights referred to above present
fairly, in all material respects, the financial position of BlackRock Senior
Floating Rate Fund, Inc. and BlackRock Senior Floating Rate Fund II, Inc.
as of August 31, 2009, and the results of their operations for the year then
ended, changes in their net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally
accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
October 30, 2009

ANNUAL REPORT AUGUST 31, 2009 63

Important Tax Information             
The following table summarizes the taxable per share distributions paid by the Funds during the taxable year ended August 31, 2009:   
              Senior 
            Senior  Floating 
    BHL  DVF  FRA  BLW  Floating Rate  Rate II 
Interest-Related Dividends for Non-U.S. Residents*†             
   September 2008  57.78%  53.85%  75.25%  70.02%  77.87%  78.22% 
   October 2008 – December 2008  57.78%  53.85%  76.83%  69.28%  76.97%  77.47% 
   January 2009  57.78%  53.85%  76.83%  69.28%  86.42%  86.22% 
   February 2009 – August 2009  73.21%  100.00%  79.34%  73.88%  86.42%  86.22% 
Federal Obligation Interest**†  —  —  —  1.11%  —  — 
     †  Expressed as a percentage of the ordinary income distributions.             
     *  Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.   
   **  The law varies in each state as to whether and what percentage of dividend income attributable to Federal Obligations is exempt from state income tax. We recommmend that 
  you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes.       

Master Portfolio Summary as of August 31, 2009    Master Senior Floating Rate LLC 
Portfolio Composition           
    Percent of     
    Long-Term Investments     
Asset Mix    8/31/09  8/31/08     
Floating Rate Loan Interests    91%  95%     
Corporate Bonds    9  5     
64  ANNUAL REPORT      AUGUST 31, 2009   

Schedule of Investments August 31, 2009 Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

Common Stocks    Shares  Value 
Chemicals — 0.0%       
GEO Specialty Chemicals, Inc. (a)(b)    39,151  $ 15,030 
Wellman Holdings, Inc. (b)    5,206  1,302 
      16,332 
Commercial Services & Supplies — 0.0%       
Sirva (b)    1,817  9,085 
Paper & Forest Products — 0.2%       
Ainsworth Lumber Co. Ltd.  335,138  483,689 
Ainsworth Lumber Co. Ltd. (a)(b)  376,109  541,090 
      1,024,779 
Total Common Stocks — 0.2%      1,050,196 
    Par   
Corporate Bonds    (000)   
Chemicals — 1.6%       
GEO Specialty Chemicals Corp.:       
     7.50%, 3/31/15 (a)(c)  USD  2,538  1,650,024 
     10.00%, 3/31/15    2,515  1,634,464 
Nalco Co., 8.25%, 5/15/17 (a)    1,015  1,060,675 
Wellman Holdings, Inc. (c):       
     Second Lien Subordinate Note, 10.00%, 1/29/19    2,000  2,000,000 
     Third Lien Subordinate Note, 5.00%, 1/29/19    2,266  1,132,873 
      7,478,036 
Commercial Services & Supplies — 0.3%       
Clean Harbors, Inc., 7.63%, 8/15/16 (a)    1,600  1,604,000 
Containers & Packaging — 0.5%       
Crown Americas LLC, 7.63%, 5/15/17 (a)    1,190  1,181,075 
Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16    1,210  1,203,950 
      2,385,025 
Diversified Financial Services — 0.1%       
FCE Bank Plc:       
     7.13%, 1/15/13  EUR  200  250,882 
     7.88%, 2/15/11  GBP  100  152,213 
      403,095 
Diversified Telecommunication Services — 0.9%       
PAETEC Holding Corp., 8.88%, 6/30/17 (a)  USD  1,300  1,238,250 
Qwest Corp.:       
     3.88%, 6/15/13 (d)    2,525  2,335,625 
     8.38%, 5/01/16 (a)    500  505,000 
      4,078,875 
Food Products — 0.4%       
Smithfield Foods, Inc., 10.00%, 7/15/14 (a)    1,790  1,825,800 
Hotels, Restaurants & Leisure — 0.2%       
MGM Mirage, 11.13%, 11/15/17 (a)    1,030  1,114,975 
IT Services — 0.3%       
SunGard Data Systems, Inc., 4.88%, 1/15/14    1,429  1,286,100 
Independent Power Producers & Energy Traders — 0.8%       
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (a)  3,770  3,751,150 
Machinery — 0.2%       
CPM Holdings, Inc., 10.63%, 9/01/14 (a)    1,000  1,010,000 
Media — 0.9%       
DIRECTV Holdings LLC, 8.38%, 3/15/13    2,000  2,050,000 
EchoStar DBS Corp., 6.38%, 10/01/11    2,000  2,002,500 
      4,052,500 

    Par   
Corporate Bonds    (000)  Value 
Paper & Forest Products — 1.0%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(e)  USD  2,891  $ 1,146,234 
NewPage Corp., 6.73%, 5/01/12 (d)    650  277,875 
Verso Paper Holdings LLC Series B, 4.23%, 8/01/14 (d)    5,400  3,024,000 
      4,448,109 
Textiles, Apparel & Luxury Goods — 0.6%       
Levi Strauss & Co., 8.63%, 4/01/13  EUR  2,000  2,738,194 
Wireless Telecommunication Services — 0.9%       
Cricket Communications, Inc., 7.75%, 5/15/16 (a)  USD  4,250  4,122,500 
Total Corporate Bonds — 8.7%      40,298,359 
Floating Rate Loan Interests       
Aerospace & Defense — 0.8%       
Hawker Beechcraft Acquisition Co. LLC:       
     Letter of Credit Facility Deposit, 2.28%, 3/26/14    280  208,445 
     Term Loan, 2.26%, 3/26/14    4,738  3,531,762 
      3,740,207 
Airlines — 0.5%       
Delta Air Lines, Inc., Credit – Linked Deposit Loan,       
 0.11% – 2.28%, 4/30/12    1,470  1,312,588 
US Airways Group, Inc., Loan, 2.76%, 3/21/14    1,475  794,152 
      2,106,740 
Auto Components — 2.3%       
Allison Transmission, Inc., Term Loan, 3.03%, 8/07/14    7,003  5,978,398 
Dana Holding Corp., Term Advance, 7.25%, 1/31/15    3,446  2,638,787 
The Goodyear Tire & Rubber Co., Loan (Second Lien), 2.02%,     
 4/30/14    2,000  1,845,000 
      10,462,185 
Automobiles — 0.3%       
Ford Motor Co., Term Loan, 3.50%, 12/15/13    1,814  1,571,713 
Building Products — 0.8%       
Building Materials Corp. of America, Term Loan Advance,       
 3.06%, 2/22/14    2,003  1,827,653 
Momentive Performance Materials (Blitz 06-103 GmbH):       
     Tranche B-1 Term Loan, 2.56%, 12/04/13    972  783,840 
     Tranche B-2 Term Loan, 2.74%, 12/04/13  EUR  969  1,046,890 
      3,658,383 
Capital Markets — 0.5%       
Marsico Parent Co., LLC, Term Loan, 4.81%, 12/15/14  USD  924  397,499 
Nuveen Investments, Inc., First Lien Term Loan,       
 3.49% – 3.50%, 11/13/14    2,343  1,901,495 
      2,298,994 
Chemicals — 5.1%       
Ashland, Inc., Term Loan B, 7.65%, 5/13/14    2,044  2,078,619 
Brenntag Holding GmbH & Co. KG:       
     Acquisition Facility 1, 2.27% – 2.99%, 1/20/14    125  119,045 
     Facility B2, 2.27%, 1/20/14    1,831  1,739,046 
Columbian Chemicals Acquisition LLC/Columbian       
 Chemicals Merger Sub, Inc., Tranche B Term Loan,       
 6.63%, 3/16/13    1,715  1,337,388 
Edwards (Cayman Islands II) Ltd., Term Loan (First Lien),       
 2.85%, 5/31/14    735  455,700 
Huish Detergents Inc.:       
     Loan (Second Lien), 4.53%, 10/26/14    750  706,875 
     Tranche B Term Loan, 2.02%, 4/26/14    1,975  1,882,653 
Nalco Co., Term Loan, 6.50%, 5/06/16    3,625  3,674,844 
PQ Corp. (fka Niagara Acquisition, Inc.):       
     Loan (Second Lien), 6.77%, 7/30/15    3,000  1,650,000 
     Original Term Loan (First Lien), 3.52% – 3.75%,       
     7/31/14    4,967  4,094,034 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 65

Schedule of Investments (continued) Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)  Value 
Chemicals (concluded)       
Rockwood Specialties Group, Inc., Term Loan H, 6.00%,     
 5/15/14  USD  1,815  $ 1,826,941 
Solutia Inc., Loan, 7.25%, 2/28/14    4,120  4,078,162 
      23,643,307 
Commercial Services & Supplies — 2.3%       
Alliance Laundry Systems LLC, Term Loan, 2.79% – 4.75%,     
 1/27/12    1,251  1,199,457 
ARAMARK Corp.:       
     Letter of Credit Facility Letter of Credit, 0.22%, 1/26/14  225  210,981 
     US Term Loan, 2.47%, 1/26/14    3,549  3,320,976 
Casella Waste Systems, Term Loan B, 7.00%, 4/09/14  1,250  1,253,125 
John Maneely Co., Term Loan, 3.52% – 3.76%, 12/09/13  1,142  895,135 
Kion Group GmbH (fka Neggio Holdings 3 GmbH):       
     Facility B, 2.51%, 12/29/14    250  158,594 
     Facility C, 2.76%, 12/29/15    250  158,594 
SIRVA Worldwide, Inc., Loan (Second Lien), 12.00%, 5/12/15  424  31,812 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.26% – 2.27%, 4/02/14    2,716  2,138,841 
West Corp., Term B-2 Loan, 2.64% – 2.65%, 10/24/13  1,389  1,317,328 
      10,684,843 
Computers & Peripherals — 0.2%       
Intergraph Corp., Second-Lien Term Loan, 6.26% – 6.37%,     
 11/28/14    1,000  932,500 
Construction Materials — 0.4%       
Headwaters Inc., Term Loan B1 (First Lien), 9.75%,       
 4/30/11    2,083  2,015,310 
Containers & Packaging — 1.5%       
Graham Packaging Co., LP:       
     B Term Loan, 2.56%, 10/07/11    423  411,657 
     C Term Loan, 6.75%, 4/27/14    1,242  1,238,433 
Graphic Packaging International, Inc.:       
     Incremental Term Loan, 3.08% – 3.35%, 5/16/14  2,594  2,529,430 
     Term B Loan, 2.33% – 2.60%, 5/16/14    584  562,588 
Smurfit-Stone Container Enterprises, Inc.:       
     Canada Tranche C, 2.57%, 11/01/11    135  128,373 
     Canada Tranche C-1 Term Loan, 2.57%, 11/01/11  41  38,813 
     Deposit Funded LC Facility, 4.50%, 11/01/10 (b)(f)  63  59,874 
     Revolving Credit Canadian, 2.82% – 5.00%, 11/12/09  104  99,067 
     Revolving Credit U.S., 2.82% – 4.50%, 11/01/09  314  298,691 
     Tranche B, 2.75%, 11/01/11 (b)(f)    72  68,138 
     U.S. Term Loan, Debtor in Possession, 10.00%,       
     7/28/10    1,412  1,426,599 
      6,861,663 
Distributors — 0.3%       
Keystone Automotive Operations, Inc., Loan, 3.77% – 5.75%,     
 1/12/12    2,602  1,417,894 
Diversified Consumer Services — 1.0%       
Coinmach Service Corp., Term Loan, 3.28% – 3.43%,       
 11/14/14    3,950  3,357,393 
Education Management LLC, Term Loan C, 2.38%,       
 6/01/13    1,413  1,351,023 
      4,708,416 
Diversified Financial Services — 0.2%       
LPL Holdings, Inc., Tranche D Term Loan, 2.01% – 2.35%,     
 6/28/13    928  854,291 

    Par   
Floating Rate Loan Interests    (000)  Value 
Diversified Telecommunication Services — 1.9%       
BCM Ireland Holdings Ltd. (Eircom):       
     Facility B, 2.37%, 9/30/15  EUR  985  $ 1,283,732 
     Facility C, 2.62%, 9/30/16    985  1,283,875 
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14  USD  1,614  979,840 
Integra Telecom Holdings, Inc., Term Loan (First Lien),       
 10.50%, 8/31/13    1,372  1,345,013 
PAETEC Holding Corp., Replacement Term Loan, 2.76%,       
 2/28/13    605  569,883 
Time Warner Telecom Holdings Inc., Term Loan B Loan,       
 2.02%, 1/07/13    628  612,412 
Wind Finance SL SA, Euro Facility (Second Lien), 7.70%,       
 1/26/14  EUR  2,000  2,875,821 
      8,950,576 
Electrical Equipment — 0.4%       
Generac Acquisition Corp., Term Loan (First Lien), 2.78%,       
 11/10/13  USD  2,107  1,766,628 
Electronic Equipment, Instruments & Components — 1.1%     
Flextronics International Ltd.:       
     A Closing Date Loan, 2.53% – 2.85%, 10/01/14    1,507  1,351,125 
     Delay Draw Term Loan, 2.76%, 10/01/14    433  388,254 
L-1 Identity Solutions Operating Co., Term Loan, 6.75%,       
 8/05/13    2,422  2,425,821 
Safenet, Inc., Loan (Second Lien), 6.27%, 4/12/15    1,250  1,045,834 
      5,211,034 
Energy Equipment & Services — 1.6%       
Brock Holdings III, Inc., Term B Loan, 2.85% – 4.50%,       
 2/26/14    1,371  1,083,017 
Dresser, Inc.:       
     Term B Loan, 2.68%, 5/04/14    1,987  1,851,633 
     Term Loan (Second Lien), 6.02%, 5/04/15    1,500  1,246,875 
MEG Energy Corp.:       
     Delayed Draw Term Loan, 2.60%, 4/02/13    1,233  1,144,975 
     Initial Term Loan, 2.60%, 4/03/13    1,209  1,123,207 
Volnay Acquisition Co. I (aka CGG), B1 Term Loan Facility,       
 3.93%, 1/12/14    1,051  1,019,860 
      7,469,567 
Food & Staples Retailing — 2.1%       
AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),       
 Facility B1, 3.53%, 7/09/15  GBP  4,000  5,579,423 
DS Waters of America, Inc., Term Loan, 2.52%,       
 10/29/12  USD  1,383  1,244,361 
DSW Holdings, Inc., Loan, 4.27%, 3/02/12    500  421,667 
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/04/15    1,775  1,837,125 
WM. Bolthouse Farms, Inc., Term Loan (First Lien), 2.56%,     
 12/16/12    779  752,173 
      9,834,749 
Food Products — 2.7%       
Dean Foods, Term Loan B, 1.65% – 1.98%, 4/02/14    1,197  1,142,458 
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 0.51%, 4/12/13    442  444,851 
     Tranche B Term Loan, 8.00%, 4/12/13    610  613,984 
Solvest, Ltd. (Dole), Tranche C Term Loan, 8.00%, 4/12/13  2,273  2,287,755 
Wm. Wrigley Jr. Co., Tranche B Term Loan, 6.50%,       
 10/06/14    7,677  7,762,905 
      12,251,953 
Health Care Equipment & Supplies — 2.5%       
Bausch & Lomb Inc.:       
     Delayed Draw Term Loan, 2.10% – 3.85%, 4/24/15    247  233,938 
     Parent Term Loan, 3.85%, 4/24/15    974  921,715 

See Notes to Financial Statements.

66 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)  Value 
Health Care Equipment & Supplies (concluded)       
Biomet, Inc., Dollar Term Loan, 3.26% – 3.61%,       
 3/25/15  USD  4,910  $ 4,711,185 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.26%, 5/20/14    2,955  2,822,025 
Hologic, Inc., Tranche B Term Loan, 3.56%, 3/31/13    495  476,233 
Iasis Healthcare LLC:       
     Delay Draw Term Loan, 2.26%, 3/14/14    584  550,832 
     Initial Term Loan, 2.26%, 3/14/14    1,689  1,591,747 
     Line of Credit, 0.16%, 3/14/14    157  148,372 
      11,456,047 
Health Care Providers & Services — 7.3%       
CCS Medical, Inc. (Chronic Care), Term Loan (First Lien),     
 4.35%, 9/30/12 (b)(f)    750  338,437 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.54%, 7/25/14    455  423,465 
     Funded Term Loan, 2.51%, 7/25/14    8,911  8,300,719 
DaVita, Inc., Tranche B-1 Term Loan, 1.77% – 2.10%,       
 10/05/12    2,375  2,279,010 
Fresenius SE:       
     Tranche B1 Term Loan, 6.75%, 7/06/14    2,510  2,522,193 
     Tranche B2 Term Loan, 6.75%, 7/06/14    1,584  1,592,339 
HCA Inc., Tranche A-1 Term Loan, 2.10%, 11/17/12    12,465  11,637,430 
HealthSouth Corp., Term Loan, 2.52% – 2.53%, 3/10/13  3,455  3,341,388 
Surgical Care Affiliates, LLC, Term Loan, 2.60%, 12/29/14  561  506,308 
Vanguard Health Holding Co. II, LLC (Vanguard Health     
 System, Inc.), Replacement Term Loan, 2.51%, 9/23/11  3,119  3,035,953 
      33,977,242 
Health Care Technology — 0.3%       
Sunquest Information Systems, Inc. (Misys Hospital Systems,     
 Inc.), Term Loan, 3.52% – 3.74%, 10/13/14    1,474  1,343,569 
Hotels, Restaurants & Leisure — 3.8%       
CCM Merger Inc. (Motor City Casino), Term B Loan, 8.50%,     
 7/13/12    1,713  1,598,401 
Green Valley Ranch Gaming, LLC:       
     Second Lien Term Loan, 3.88%, 8/16/14    1,750  358,750 
     Term Loan (New), 2.54% – 4.00%, 2/16/14    471  327,045 
Harrah’s Operating Co., Inc.:       
     Term B-1 Loan, 3.50%, 1/28/15    414  332,998 
     Term B-2 Loan, 3.50%, 1/28/15    7,432  5,987,025 
     Term B-3 Loan, 3.50% – 3.60%, 1/28/15    365  293,418 
Lake at Las Vegas Joint Venture/LLV-1, LLC (b)(f):       
     First and Second Tranche Term Loan, 12.35% – 15.00%,     
     12/22/12    3,646  72,916 
     Revolving Loan Credit-Linked Deposit Account, 12.35%,     
     12/22/12    361  7,222 
Penn National Gaming, Inc., Term Loan B, 2.01% – 2.21%,     
 10/03/12    4,678  4,546,869 
QCE, LLC (Quiznos), Term Loan:       
     (First Lien), 2.88%, 5/15/13    1,940  1,445,300 
     (Second Lien), 6.35%, 11/05/13    2,800  1,288,000 
VML US Finance LLC (aka Venetian Macau), Term B Funded     
 Project Loan, 6.10%, 5/27/13    1,620  1,482,047 
      17,739,991 
Household Durables — 1.7%       
American Achievement Corp., Tranche B Term Loan,       
 6.25%, 3/25/11    886  752,715 
Jarden Corp., Term Loan B3, 3.10%, 1/24/12    1,224  1,207,700 
Simmons Bedding Co., Tranche D Term Loan, 10.50%,     
 12/19/11    4,269  4,148,216 
Yankee Candle Co., Inc., Term Loan, 2.27%, 2/06/14  1,736  1,609,959 
      7,718,590 

    Par   
Floating Rate Loan Interests    (000)  Value 
IT Services — 3.3%       
Audio Visual Services Group, Inc.:       
     Loan (Second Lien), 7.10%, 8/28/14  USD  1,560  $ 124,776 
     Tranche B Term Loan (First Lien), 2.85%, 2/28/14  1,350  837,000 
Ceridian Corp., US Term Loan, 3.27%, 11/09/14    3,213  2,750,345 
First Data Corp., Initial Tranche:       
     Initial Tranche B-1 Term Loan, 3.01% – 3.02%, 9/24/14  2,816  2,346,359 
     Initial Tranche B-2 Term Loan, 3.01% – 3.02%, 9/24/14  8,246  6,861,177 
RedPrairie Corp.:       
     Tack-on-Loan, 3.69%, 7/20/12    260  224,516 
     Term Loan B, 3.44% – 5.25%, 7/20/12    431  373,207 
SunGard Data Systems Inc. (Solar Capital Corp.):       
     Incremental Term Loan, 6.75%, 2/28/14    997  991,609 
     Tranche B US Term Loan, 3.95% – 4.09%, 2/28/16  844  815,129 
      15,324,118 
Independent Power Producers & Energy Traders — 4.2%     
Dynegy Holdings, Inc.:       
     Term Letter of Credit Facility Term Loan, 4.02%, 4/02/13  971  933,517 
     Tranche B Term Loan, 4.02%, 4/02/13    79  75,533 
NRG Energy, Inc., Term Loan, 2.01% – 2.35%, 2/01/13  3,872  3,651,892 
Texas Competitive Electric Holdings Co., LLC       
 (TXU), Initial Tranche:       
     Initial Tranche B-2 Term Loan, 3.78% – 3.79%,       
     10/10/14    9,140  6,946,304 
     Initial Tranche B-3 Term Loan, 3.78% – 3.79%,       
     10/10/14    10,291  7,788,380 
      19,395,626 
Industrial Conglomerates — 0.4%       
Sequa Corp., Term Loan, 3.65% – 3.88%, 12/03/14    2,383  2,031,534 
Insurance — 0.3%       
Alliant Holdings I, Inc., Term Loan, 3.60%, 8/21/14    1,713  1,576,113 
Internet Software & Services — 0.0%       
Channel Master Holdings, Inc. (b)(f)(g):       
     Revolver, 8.31%, 11/15/04    128  — 
     Term Loan, 9.00%, 11/15/04    1,014  — 
      — 
Leisure Equipment & Products — 0.5%       
Fender Musical Instruments Corp.:       
     Delayed Draw Loan, 2.54%, 6/09/14    661  528,881 
     Initial Loan, 2.85%, 6/09/14    1,309  1,047,078 
True Temper Sports, Inc., Term Loan B, 5.50%, 3/15/11  1,057  810,049 
      2,386,008 
Life Sciences Tools & Services — 0.9%       
Life Technologies Corp. Term B Facility, 5.25%, 11/20/15  4,168  4,209,572 
Machinery — 1.8%       
Navistar Financial Corp., Tranche A Term loan, 2.31%,     
 3/27/10    1,843  1,787,959 
Navistar International Corp.:       
     Revolving Credit-Linked Deposit, 3.39% – 3.51%,     
     1/19/12    1,333  1,240,000 
     Term Advance, 3.51%, 1/19/12    3,667  3,410,000 
Oshkosh Truck Corp., Term B Loan, 6.60% – 6.64%,       
 12/06/13    2,109  2,099,059 
      8,537,018 
Media — 22.5%       
AlixPartners, LLP, Tranche C Term Loan, 2.28% – 2.51%,     
 10/12/13    423  411,386 
Alpha Topco Ltd. (Formula One):       
     Facility B1, 2.51%, 12/31/13    840  706,380 
     Facility B2, 2.51%, 12/31/13    568  477,139 
     Facility D, 3.76%, 6/30/14    1,000  740,000 

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 67

Schedule of Investments (continued) Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests    (000)  Value 
Media (continued)       
Bragg Communications Inc., Term Loan B Tranche Two       
 Facility, 3.17%, 8/31/14  USD  1,206  $ 1,168,662 
Bresnan Communications, LLC Term Loan B (First Lien),       
 2.47% – 2.64%, 9/29/13    1,746  1,672,527 
CSC Holdings Inc. (Cablevision), Incremental Term Loan,       
 2.02% – 2.07%, 3/29/13    3,432  3,316,972 
Catalina Marketing Corp., Initial B Term Loan, 3.03%,       
 10/01/14    1,744  1,639,103 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    8,591  8,246,998 
Cequel Communications, LLC:       
     Tranche A Term Loan (Second Lien), 4.78%, 5/05/14  5,000  4,506,250 
     Term Loan, 2.27%, 11/05/13    5,872  5,545,558 
Charter Communications Operating, LLC, New Term Loan,       
 4.25%, 3/06/14 (b)(f)    2,929  2,718,220 
Charter Communications, Term Loan B1, 7.94%, 3/25/14  6,525  6,521,737 
FoxCo Acquisition Sub, LLC, Term Loan, 7.25%, 7/14/15    1,338  1,096,401 
Gray Television, Inc., Term Loan B, 3.78%, 12/31/14    1,319  951,233 
HMH Publishing Co. Ltd.:       
     Mezzanine, 17.50%, 11/14/14 (e)    9,049  1,357,358 
     Tranche A Term Loan, 5.26%, 6/12/14    4,389  3,395,774 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.52% – 2.54%, 3/08/14    2,227  939,216 
Hargray Acquisition Co./DPC Acquisition LLC/HCP       
 Acquisition LLC, Term Loan (First Lien), 2.72%, 6/27/14  1,946  1,775,898 
Harland Clarke Holdings Corp. (fka Clarke American Corp.),     
 Tranche B Term Loan, 2.76%, 6/30/14    2,284  1,865,628 
Insight Midwest Holdings, LLC, B Term Loan, 2.28%,       
 4/07/14    3,075  2,934,429 
Intelsat Corp. (fka PanAmSat Corp.):       
     Tranche B-2-A Term Loan, 2.78%, 1/03/14    1,247  1,177,245 
     Tranche B-2-B Term Loan, 2.78%, 1/03/14    1,247  1,179,624 
     Tranche B-2-C Term Loan, 2.78%, 1/03/14    1,247  1,179,624 
Intelsat Subsidiary Holding Co. Ltd., Tranche B Term Loan       
 2.78%, 7/03/13    1,962  1,871,410 
Knology, Inc., Term Loan, 2.51%, 6/30/12    1,602  1,521,732 
Lamar Media Corp.:       
     Term Loan, 5.50%, 9/28/12    3,984  3,924,360 
     Series E Incremental Loan, 5.50%, 3/15/13    988  978,859 
Local TV Finance, LLC, Term Loan, 2.27%, 5/07/13    1,234  843,408 
MCC Iowa LLC (Mediacom Broadband Group), Tranche       
 E Term Loan, 6.50%, 11/30/16    2,394  2,396,947 
MCNA Cable Holdings LLC (OneLink Communications),       
 Loan, 8.31%, 3/01/13 (e)    1,236  469,840 
Mediacom Illinois, LLC (fka meidacom Communications,       
 LLC), Tranche D Term Loan, 3.96%, 3/31/17    1,500  1,496,250 
Metro-Goldwyn-Mayer Inc., Tranche B Term Loan, 3.51%,       
 4/09/12    1,736  965,844 
Multicultural Radio Broadcasting, Inc., Term Loan, 3.03%,     
 12/18/12    515  360,588 
NTL Cable Plc, Second Lien, 4.19%, 3/04/12  GBP  710  1,017,142 
NV Broadcasting, LLC:       
     Second Lien, 7.77%, 11/03/14 (b)(f)  USD  3,250  32,500 
     Term Loan, Debtor in Possession, 13.00%, 7/14/12    170  168,300 
Newsday, LLC, Floating Rate Term Loan, 6.01%, 8/01/13    2,500  2,468,750 
NextMedia Operating, Inc.:       
     Delay Draw Term Loan, 8.25%, 11/15/12    121  78,950 
     Initial Term Loan (1st Lien), 8.25%, 11/15/12    1,399  909,505 
     Loan (Second Lien), 11.25%, 11/15/13    3,291  394,965 
Nielsen Finance LLC:       
     Class A Dollar Term Loan, 2.28%, 8/09/13    2,956  2,751,439 
     Class B Dollar Term Loan, 4.03%, 5/01/16    6,172  5,785,039 
Penton Media, Inc.:       
     Loan (Second Lien), 5.49%, 2/01/14    500  105,000 
     Term Loan (First Lien), 2.51% – 2.74%, 2/01/13    489  327,463 

    Par   
Floating Rate Loan Interests    (000)  Value 
Media (concluded)       
Sunshine Acquisition Ltd. (aka HIT Entertainment), Term       
 Facility, 2.73%, 6/01/12  USD  4,243  $ 3,527,145 
TWCC Holding Corp., Term Loan, 7.25%, 9/14/15    3,686  3,707,830 
Tribune Co., Debtor in Possession, Term Loan, 9.00%,       
 4/07/10    1,100  1,105,500 
UPC Financing Partnership, Facility U, 4.54%,       
 12/31/17  EUR  3,200  4,186,140 
United Pan Europe Communications, Term Loan, 3.76%,       
 12/31/16  USD  2,000  1,965,000 
Virgin Media Investment Holdings Ltd.:       
     B7 Facility, 5,39%, 9/30/12  GBP  199  297,977 
     B8 Facility, 5.39%, 9/30/12    131  196,266 
     B11 Facility, 5.12%, 7/30/12    823  1,232,849 
     B12 Facility, 5.31%, 7/30/12    1,141  1,708,786 
World Color Press Inc. and World Color (USA) Corp. (fka       
 Quebecor World Inc.), Advance, 9.00%, 6/30/12    1,800  1,786,500 
      104,105,646 
Metals & Mining — 0.5%       
Essar Steel Algoma Inc. (fka Algoma Steel Inc.), Term       
 Loan, 2.77%, 6/20/13  USD  2,434  2,190,399 
Multi-Utilities — 1.0%       
Brand Energy & Infrastructure Services, Inc. (FR Brand       
 Acquisition Corp.):       
     Loan (Second Lien), 6.31% – 6.44%, 2/07/15    1,200  828,000 
     Term B Loan (First Lien), 2.32% – 2.63%, 2/07/14    170  152,610 
Energy Transfer Equity, LP, Term Loan, 2.21%, 11/01/12    750  726,428 
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     Term B Advance (First Lien), 3.13%, 11/01/13    2,217  2,041,271 
     Synthetic Letter of Credit, 0.48%, 11/01/13    283  260,291 
Mach Gen, LLC, Synthetic Letter of Credit Loan (First Lien),     
 0.35%, 2/22/13    69  63,696 
USPF Holdings, LLC, Term Loan, 2.02%, 4/11/14    886  823,944 
      4,896,240 
Multiline Retail — 0.5%       
Dollar General Corp., Tranche B-1 Term Loan, 3.01% – 3.24%,     
 7/07/14    2,300  2,237,070 
Oil, Gas & Consumable Fuels — 1.8%       
Big West Oil, LLC (b)(f):       
     Delayed Advance Loan, 4.50%, 5/15/14    956  879,335 
     Initial Advance Loan, 4.50%, 5/15/14    1,207  1,110,344 
ScorpionDrilling Ltd., Loan (Second Lien), 8.10%,       
 5/08/14    5,350  4,440,500 
Vulcan Energy Corp. (fka Plains Resources Inc), Term B3       
 Loan, 5.50%, 8/12/11    1,750  1,725,938 
      8,156,117 
Paper & Forest Products — 2.8%       
Georgia-Pacific LLC:       
     Term B Loan, 2.34% – 2.46%, 12/20/12    6,437  6,218,319 
     Term Loan B2, 2.31% – 2.65%, 12/20/12    1,518  1,466,429 
NewPage Corp., Term Loan, 4.06%, 12/22/14    5,727  5,303,273 
      12,988,021 
Personal Products — 0.5%       
American Safety Razor Co., LLC Loan (Second Lien), 6.52%,     
 1/30/14    2,650  2,067,000 
Pharmaceuticals — 0.3%       
Warner Chilcott Co., Inc.:       
     Tranche B Acquisition Date Term Loan, 2.26% – 2.60%,     
     1/18/12    1,182  1,173,773 
     Tranche C Acquisition Date Term Loan, 2.26%, 1/18/12  414  411,652 
      1,585,425 

See Notes to Financial Statements.

68 ANNUAL REPORT AUGUST 31, 2009

Schedule of Investments (continued) Master Senior Floating Rate LLC
(Percentages shown are based on Net Assets)

  Par   
Floating Rate Loan Interests  (000)  Value 
Professional Services — 0.5%     
Booz Allen Hamilton Inc., Tranche B Term Loan, 7.50%,     
 7/31/15  USD 2,374 $  2,374,027 
Real Estate Management & Development — 0.5%     
Mattamy Funding Partnership, Loan, 2.63%, 4/11/13  2,903  2,322,000 
Specialty Retail — 0.3%     
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan, 2.52%,   
 10/20/13  750  703,750 
General Nutrition Centers, Inc., Term Loan, 2.52% – 2.85%,   
 9/16/13  550  505,513 
    1,209,263 
Textiles, Apparel & Luxury Goods — 0.2%     
Hanesbrands Inc., Term B Loan, 5.02% – 5.25%,     
 9/05/13  1,045  1,045,707 
Trading Companies & Distributors — 0.2%     
Beacon Sales Acquisition, Inc., Term B Loan, 2.26% – 2.60%,   
 9/30/13  953  895,350 
Wireless Telecommunication Services — 2.1%     
Cellular South, Inc.:     
     Delayed Draw Term Loan, 2.01%, 5/29/14  500  477,500 
     Term Loan, 2.01% – 4.00%, 5/29/14  1,470  1,403,850 
Digicel International Finance Ltd., Tranche A, 3.13%,     
 3/01/12  4,475  4,251,250 
MetroPCS Wireless, Inc., New Tranche B Term Loan,     
 2.56% – 2.75%, 11/03/13  2,226  2,092,634 
Ntelos, Term B Advance, 5.75%, 7/31/15  1,500  1,496,250 
    9,721,484 
Total Floating Rate Loan Interests — 86.7%    401,930,130 
  Beneficial   
  Interest   
Other Interests (h)  (000)   
Diversified Financial Services — 0.2%     
J.G. Wentworth LLC Preferred Equity Interests  921  777,120 
Total Other Interests — 0.2%    777,120 
Total Long-Term Investments     
(Cost — $520,136,694 ) — 95.8%    444,055,805 
Short-Term Securities  Shares   
BlackRock Liquidity Funds, TempFund, 0.22% (i)(j)  33,608,423  33,608,423 
Total Short-Term Securities     
(Cost — $33,608,423) — 7.3%    33,608,423 
Total Investments (Cost — $553,745,117*) — 103.1%    477,664,228 
Liabilities in Excess of Other Assets — (3.1)%    (14,380,271) 
Net Assets — 100.0%  $ 463,283,957 
   * The cost and unrealized appreciation (depreciation) of investments as of August 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost  $ 553,814,673 
       Gross unrealized appreciation  $ 9,012,104 
       Gross unrealized depreciation    (85,162,549) 
       Net unrealized depreciation  $ (76,150,445) 

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. 
  These securities may be resold in transactions exempt from registration to qualified 
  institutional investors.             
(b) Non-income producing security.           
(c) Convertible security.             
(d) Variable rate security. Rate shown is as of report date.       
(e) Represents a payment-in-kind security which may pay interest/dividends in addi- 
  tional par/shares.               
(f) Issuer filed for bankruptcy and/or is in default of interest payments.   
(g) As a result of bankruptcy proceedings, the company did not repay the principal 
  amount of the security upon maturity.           
(h) Other interests represent beneficial interest in liquidation trusts and other reorgani- 
  zation entities and are non-income producing.       
(i) Investments in companies considered to be an affiliate of the Master LLC, for pur- 
  poses of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
                Net     
  Affiliate          Activity    Income 
  BlackRock Liquidity Funds, TempFund    USD 33,608,423    $ 78,227 
  BlackRock Liquidity Series, LLC           
  Cash Sweep Series      USD (29,066,037)    $200,626 
(j) Represents the current yield as of report date.       
•  For Master LLC compliance purposes, the Master LLC’s industry classifications refer 
  to any one or more of the industry sub-classifications used by one or more widely 
  recognized market indexes or ratings group indexes, and/or as defined by Master 
  LLC management. This definition may not apply for purposes of this report, which 
  may combine industry sub-classifications for reporting ease.     
•  Foreign currency exchange contracts as of August 31, 2009 were as follows: 
                    Unrealized 
  Currency      Currency      Settlement Appreciation 
  Purchased      Sold    Counterparty  Date  (Depreciation) 
  USD  235,838  EUR  166,000    Citibank NA  9/16/09 $  (2,146) 
  USD  1,057,022  EUR  745,000    Citibank NA  9/16/09  (11,039) 
  USD  2,829,491  EUR  1,982,000    Citibank NA  9/16/09  (11,979) 
  USD  7,671,767  EUR  5,494,500  Deutsche Bank AG 9/16/09  (205,357) 
              Royal Bank       
  USD  1,265,411  EUR  889,000    of Scotland  9/16/09  (9,093) 
  USD  570,971  CAD  620,000  Barclays Bank PLC 10/28/09  4,580 
  USD  8,344,123  GBP  5,105,000    Citibank NA  10/28/09  34,112 
  Total              $ (200,922) 
•  Credit default swaps on traded index issues — bought protection outstanding as of 
  August 31, 2009 were as follows:           
      Pay        Notional   
      Fixed  Counter-      Amount  Unrealized 
  Index  Rate  party    Expiration  (000)1  Depreciation 
          Credit Suisse,  June       
  LCDX Index  5.00%  International  2014  USD 3,255  $ (290,086) 
  1  The maximum potential amount the Fund may pay should a negative credit 
    event take place as defined under the terms of the agreement. See Note 2 of 
    the Notes to Financial Statements.         
•  Currency Abbreviations:             
  CAD  Canadian Dollar             
  EUR Euro                 
  GBP  British Pound             
  USD  US Dollar               

See Notes to Financial Statements.

ANNUAL REPORT AUGUST 31, 2009 69

Schedule of Investments (concluded) Master Senior Floating Rate LLC

• Effective September 1, 2008, the Master LLC adopted Financial Accounting
Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, estab-
lishes a framework for measuring fair values and requires additional disclosures
about the use of fair value measurements. Various inputs are used in determining
the fair value of investments, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical securities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Master LLC’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Master LLC’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of August 31, 2009 in determin- 
ing the fair valuation of the Master LLC’s investments:   
Valuation    Investments in 
Inputs    Securities 
    Assets 
Level 1     
 Long-Term Investments:     
   Common Stocks    $ 483,689 
 Short-Term Securities    33,608,423 
Total Level 1    34,092,112 
Level 2     
 Long-Term Investments:     
   Common Stocks    550,175 
   Corporate Bonds    33,880,998 
   Floating Rate Loan Interests    304,641,971 
Total Level 2    339,073,144 
Level 3     
 Long-Term Investments:     
   Common Stocks    16,332 
   Corporate Bonds    6,417,361 
   Floating Rate Loan Interests    97,288,159 
   Other Interests    777,120 
Total Level 3    104,498,972 
Total    $477,664,228 
Valuation  Other Financial 
Inputs  Instruments1 
  Assets  Liabilities 
Level 1  —  — 
Level 2  $ 38,692  $ (529,700) 
Level 3  —  (112,385) 
Total  $ 38,692  $ (642,085) 
1 Other financial instruments are foreign currency exchange contracts, unfunded 
loan commitments and swaps which are shown at the unrealized appreciation/ 
     depreciation on the instrument.     

  The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:           
        Investments in Securities     
      Common  Corporate  Floating Rate    Other   
      Stocks  Bonds  Loan Interests  Interests  Total 
  Balance, as of August 31, 2008  $ 15,030  —  $ 43,430,665    —  $ 43,445,695 
  Accrued discounts/premiums    —  —  —    —  — 
  Realized gain (loss)    —  —  (12,647,335)    —  (12,647,335) 
  Change in unrealized appreciation (depreciation)2    —  $ (592,309)  10,806,622    —  10,214,313 
  Net purchases (sales)    —  —  (34,773,486)    —  (34,773,486) 
  Net transfers in/out of Level 3    1,302  7,009,670  90,471,693  $ 777,120  98,259,785 
  Balance, as of August 31, 2009  $ 16,332  $ 6,417,361  $ 97,288,159  $ 777,120  $104,498,972 
  2 Included in the related net change in unrealized appreciation/depreciation on the Statement of Operations.           
  The following is a reconciliation of other financial instruments for unobservable             
  inputs (Level 3) used in determining fair value:               
    Other Financial             
    Instruments3             
    Liabilities             
  Balance, as of August 31, 2008  —             
  Accrued discounts/premiums  —             
  Realized gain (loss)  —             
  Change in unrealized appreciation (depreciation)  —             
  Net purchases (sales)  —             
  Net transfers in/out of Level 3  $ (112,385)             
  Balance as of August 31, 2009  $ (112,385)             
   3 Other financial instruments are unfunded loan commitments.               
See Notes to Financial Statements.               
70  ANNUAL REPORT      AUGUST 31, 2009       

Statement of Assets and Liabilities  Master Senior Floating Rate LLC 
August 31, 2009     
Assets     
Investments at value — unaffiliated (cost — $520,136,694)  $ 444,055,805 
Investments at value — affiliated (cost — $33,608,423)    33,608,423 
Unrealized appreciation on foreign currency exchange contracts    38,692 
Foreign currency at value (cost — $37,381)    37,366 
Cash    109,518 
Interest receivable    3,971,146 
Investments sold receivable    3,893,176 
Contributions receivable from investors    748,255 
Swap premium paid    521,311 
Prepaid expenses    18,214 
Principal paydown receivable    13,843 
Other assets    189,286 
Total assets    487,205,035 
Liabilities     
Unrealized depreciation on foreign currency exchange contracts    239,614 
Unrealized depreciation on swaps    290,086 
Unrealized depreciation on unfunded loan commitments    112,385 
Investments purchased payable    22,609,445 
Investment advisory fees payable    367,525 
Deferred income    142,136 
Other accrued expenses payable    110,093 
Swaps payable    32,025 
Other affiliates payable    1,442 
Officer’s and Directors’ fees payable    725 
Other liabilities    15,602 
Total liabilities    23,921,078 
Net Assets  $ 463,283,957 
Net Assets Consist of     
Investors’ capital  $ 539,991,233 
Net unrealized appreciation/depreciation    (76,707,276) 
Net Assets  $ 463,283,957 
See Notes to Financial Statements.     
                                                         ANNUAL REPORT  AUGUST 31, 2009  71 

Statement of Operations    Master Senior Floating Rate LLC 
Year Ended August 31, 2009         
     Investment Income         
Interest        $ 31,329,626 
Income — affiliated        278,853 
Facility and other fees        523,623 
Total income        32,132,102 
     Expenses         
Investment advisory        4,077,764 
Accounting services        171,056 
Officer and Directors        55,859 
Professional        45,947 
Custodian        44,697 
Printing        5,302 
Miscellaneous        94,264 
Total expenses excluding interest expense      4,494,889 
Interest expense        8,398 
Total expenses        4,503,287 
Less fees waived by advisor        (11,939) 
Total expenses after fees waived      4,491,348 
Net investment income        27,640,754 
     Realized and Unrealized Gain (Loss)       
Net realized gain (loss) from:         
   Investments        (51,663,096) 
   Swaps        46,864 
   Foreign currency        1,716,646 
        (49,899,586) 
Net change in unrealized appreciation/depreciation on:       
   Investments        (15,700,804) 
   Swaps        (348,501) 
   Foreign currency        (1,136,888) 
   Unfunded corporate loans        259,893 
        (16,926,300) 
Total realized and unrealized loss      (66,825,886) 
Net Decrease in Net Assets Resulting from Operations      $ (39,185,132) 
Statements of Changes in Net Assets    Master Senior Floating Rate LLC 
      Year Ended 
      August 31, 
Increase (Decrease) in Net Assets:    2009  2008 
     Operations         
Net investment income      $ 27,640,754  $ 40,966,288 
Net realized loss      (49,899,586)  (21,219,849) 
Net change in unrealized appreciation/depreciation    (16,926,300)  (27,182,080) 
Net decrease in net assets resulting from operations    (39,185,132)  (7,435,641) 
     Capital Transactions         
Proceeds from contributions      45,763,562  62,053,522 
Fair value of withdrawals      (132,042,492)  (224,197,628) 
Net decrease in net assets derived from capital transactions    (86,278,930)  (162,144,106) 
     Net Assets         
Total decrease in net assets      (125,464,062)  (169,579,747) 
Beginning of year           588,748,019  758,327,766 
End of year      $ 463,283,957  $ 588,748,019 
See Notes to Financial Statements.       
72  ANNUAL REPORT  AUGUST 31, 2009     

Statement of Cash Flows     
Year Ended August 31, 2009     
     Cash Provided by Operating Activities     
Net decrease in net assets resulting from operations    $ (39,185,132) 
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:     
   Decrease in interest receivable    910,414 
   Increase in other assets    (131,011) 
   Decrease in prepaid expenses    2,653 
   Decrease in investment advisor payable    (119,166) 
   Decrease in other affiliates payable    (2,746) 
   Increase in other liabilities payable    14,863 
   Decrease in accrued expenses payable    (133,431) 
   Increase in swaps payable    8,643 
   Increase in Officer’s and Directors’ fees    466 
   Swap premium received    6,400 
   Swap premium paid    (600,638) 
   Net realized and unrealized loss    68,061,566 
   Amortization of premium and discount on investments    (4,115,187) 
   Paid-in-kind Income    (686,595) 
Proceeds from sales and paydowns of long-term securities    263,963,681 
Purchases of long-term securities    (198,389,728) 
Net purchases of short-term investments    (4,542,386) 
Cash provided by operating activities    85,062,666 
     Cash Used for Financing Activities     
Cash receipts from borrowings    29,000,000 
Cash payments on borrowings    (29,000,000) 
Cash receipts from contributions    46,446,155 
Cash payments on withdrawals    (132,042,492) 
Cash used for financing activities    (85,596,337) 
     Cash Impact From Foreign Exchange Fluctuations     
Cash impact from foreign exchange fluctuations    13,927 
     Cash     
Net decrease in cash    (519,744) 
Cash at beginning of year    666,628 
Cash at end of year    $ 146,884 
     Cash Flow Information     
Cash paid for interest    $ 8,398 
See Notes to Financial Statements.     
                                                         ANNUAL REPORT  AUGUST 31, 2009  73 

Financial Highlights      Master Senior Floating Rate LLC 
      Year Ended August 31,     
    2009       2008  2007    2006  2005 
     Total Investment Return               
Total investment return    (4.23)%  (1.08)%  3.49%    5.37%  5.78% 
     Ratios to Average Net Assets             
Total expenses    1.05%  1.04%  1.04%    1.04%  1.01% 
Total expenses after fees waived  1.05%  1.04%  1.04%    1.04%  1.01% 
Total expenses after fees waived and excluding interest expense  1.04%  1.04%  1.02%    1.03%  1.01% 
Net investment income    6.44%  6.41%  7.07%    6.22%  4.52% 
     Supplemental Data               
Net assets, end of year (000)    $ 463,284  $ 588,748  $ 758,328  $ 925,910  $ 1,032,819 
Portfolio turnover    47%  56%  46%    54%  53% 
Average loan outstanding during the year (000)  $ 420  —  $ 2,255  $ 1,932  — 
See Notes to Financial Statements.             
74  ANNUAL REPORT    AUGUST 31, 2009       

Notes to Financial Statements Master Senior Floating Rate LLC

1. Organization and Significant Accounting Policies:

Master Senior Floating Rate LLC (the “Master LLC”) is registered under the
Investment Company Act of 1940, as amended (the “1940 Act”), and is
organized as a Delaware limited liability company. The Limited Liability
Company Agreement permits the Board of Directors (the “Board”) to issue
nontransferable interests in the Master LLC, subject to certain limitations.
The Master LLC’s financial statements are prepared in conformity with
accounting principles generally accepted in the United States of America,
which may require the use of management accruals and estimates. Actual
results may differ from these estimates.

The following is a summary of significant accounting policies followed by
the Master LLC:

Valuation of Investments: The Master LLC values its bond investments on
the basis of last available bid prices or current market quotations provided
by dealers or pricing services selected under the supervision of the Master
LLC’s Board. Floating rate loan interests are valued at the mean between
the last available bid prices from one or more brokers or dealers as
obtained from a pricing service. In determining the value of a particular
investment, pricing services may use certain information with respect to
transactions in such investments, quotations from dealers, pricing matrixes,
market transactions in comparable investments, various relationships
observed in the market between investments and calculated yield meas-
ures based on valuation technology commonly employed in the market for
such investments. Swap agreements are valued utilizing quotes received
daily by the Master LLC’s pricing service or through brokers which are
derived using daily swap curves and trades of underlying securities. Short-
term securities with maturities less than 60 days may be valued at amor-
tized cost, which approximates fair value.

Equity investments traded on a recognized securities exchange or the
NASDAQ Global Market System are valued at the last reported sale price
that day or the NASDAQ official closing price, if applicable. For equity
investments traded on more than one exchange, the last reported sale
price on the exchange where the stock is primarily traded is used. Equity
investments traded on a recognized exchange for which there were no
sales on that day are valued at the last available bid price. If no bid price
is available, the prior day’s price will be used, unless it is determined that
such prior day’s price no longer reflects the fair value of the security.

In the event that application of these methods of valuation results in
a price for an investment which is deemed not to be representative of
the market value of such investment or are not available, the investment
will be valued by a method approved by the Board as reflecting fair value
(“Fair Value Assets”). When determining the price for Fair Value Assets, the
investment advisor and/or sub-advisor seeks to determine the price that
the Master LLC might reasonably expect to receive from the current sale of
that asset in an arm’s-length transaction. Fair value determinations shall be
based upon all available factors that the investment advisor and/or sub-
advisor deems relevant. The pricing of all Fair Value Assets is subsequently
reported to the Board or a committee thereof.

Foreign Currency Transactions: Foreign currency amounts are translated
into United States dollars on the following basis: (i) market value of
investment securities, assets and liabilities at the current rate of exchange;
and (ii) purchases and sales of investment securities, income and
expenses at the rates of exchange prevailing on the respective dates of
such transactions.

The Master LLC reports foreign currency related transactions as compo-
nents of realized gains for financial reporting purposes, whereas such com-
ponents are treated as ordinary income for federal income tax purposes.

Floating Rate Loans: The Master LLC may invest in floating rate loans,
which are generally non-investment grade, made by banks, other financial
institutions and privately and publicly offered corporations. Floating rate
loans are senior in the debt structure of a corporation. Floating rate loans
generally pay interest at rates that are periodically determined by reference
to a base lending rate plus a premium. The base lending rates are gener-
ally (i) the lending rate offered by one or more European banks, such as
LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one
or more US banks or (iii) the certificate of deposit rate. The Master LLC
consider these investments to be investments in debt securities for pur-
poses of their investment policies.

The Master LLC earns and/or pays facility and other fees on floating rate
loans. Other fees earned/paid include commitment, amendment, consent,
commissions and prepayment penalty fees. Facility, amendment and con-
sent fees are typically amortized as premium and/or accreted as discount
over the term of the loan. Commitment, commission and various other fees
are recorded as income. Prepayment penalty fees are recognized on the
accrual basis. When the Master LLC buys a floating rate loan it may receive
a facility fee and when it sells a floating rate loan it may pay a facility fee.
On an ongoing basis, the Master LLC may receive a commitment fee based
on the undrawn portion of the underlying line of credit portion of a floating
rate loan. In certain circumstances, the Master LLC may receive a prepay-
ment penalty fee upon the prepayment of a floating rate loan by a bor-
rower. Other fees received by the Master LLC may include covenant waiver
fees and covenant modification fees.

The Master LLC may invest in multiple series or tranches of a loan.
A different series or tranche may have varying terms and carry different
associated risks.

Floating rate loans are usually freely callable at the issuer’s option. The
Master LLC may invest in such loans in the form of participations in loans
(“Participations”) and assignments of all or a portion of loans from third
parties. Participations typically will result in the Master LLC having a con-
tractual relationship only with the lender, not with the borrower. The Master
LLC will have the right to receive payments of principal, interest and any
fees to which it is entitled only from the lender selling the Participation and
only upon receipt by the lender of the payments from the borrower.

ANNUAL REPORT AUGUST 31, 2009 75

Notes to Financial Statements (continued) Master Senior Floating Rate LLC

In connection with purchasing Participations, the Master LLC generally will
have no right to enforce compliance by the borrower with the terms of the
loan agreement relating to the loans, nor any rights of offset against the
borrower, and the Master LLC may not benefit directly from any collateral
supporting the loan in which it has purchased the Participation.

As a result, the Master LLC will assume the credit risk of both the borrower
and the lender that is selling the Participation. The Master LLC’s invest-
ments in loan participation interests involve the risk of insolvency of the
financial intermediaries who are parties to the transactions. In the event of
the insolvency of the lender selling the Participation, the Master LLC may
be treated as general creditor of the lender and may not benefit from any
offset between the lender and the borrower.

Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that the Master LLC either delivers collateral or segregates
assets in connection with certain investments (e.g., swaps and foreign cur-
rency exchange contracts) the Master LLC will, consistent with SEC rules
and/or certain interpretive letters issued by the SEC, segregate collateral or
designate on its books and records cash or other liquid securities having a
market value at least equal to the amount that would otherwise be
required to be physically segregated. Furthermore, based on requirements
and agreements with certain exchanges and third party broker-dealers,
each party has requirements to deliver/deposit securities as collateral for
certain investments (e.g., swaps). As part of these agreements, when the
value of these investments achieves a previously agreed upon value (mini-
mum transfer amount), each party may be required to deliver additional
collateral.

Investment Transactions and Investment Income: For financial reporting
purposes, with respect to the Master LLC, investment transactions are
recorded on the dates the trans-actions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend
dates. Dividends from foreign securities where the ex-dividend date
may have passed are subsequently recorded when the Master LLC has
determined the ex-dividend date. Interest income is recognized on the
accrual basis. The Master LLC amortizes all premiums and discounts on
debt securities.

Income Taxes: The Master LLC is classified as a partnership for federal
income tax purposes. As such, each investor in the Master LLC is treated as
owner of its proportionate share of the net assets, income, expenses and
realized and unrealized gains and losses of the Master LLC. Therefore, no
federal income tax provision is required. It is intended that the Master LLC’s
assets will be managed so an investor in the Master LLC can satisfy the
requirements of Subchapter M of the Internal Revenue Code.

The Master LLC files US federal and various state and local tax returns.
No income tax returns are currently under examination. The statute of
limitations on the Master LLC’s US federal tax returns remains open for

each of the four years ended August 31, 2009. The statutes of limitations
on the Master LLC’s state and local tax returns may remain open for an
additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In June 2009, Statement of Financial
Accounting Standards No. 166, “Accounting for Transfers of Financial Assets
— an amendment of FASB Statement No. 140” (“FAS 166”), was issued.
FAS 166 is intended to improve the relevance, representational faithfulness
and comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows;
and a transferor’s continuing involvement, if any, in transferred financial
assets. FAS 166 is effective for financial statements issued for fiscal years
and interim periods beginning after November 15, 2009. Earlier application
is prohibited. The recognition and measurement provisions of FAS 166
must be applied to transfers occurring on or after the effective date.
Additionally, the disclosure provisions of FAS 166 should be applied to
transfers that occurred both before and after the effective date of FAS 166.
The impact of FAS 166 on the Master LLC’s financial statement disclo-
sures, if any, is currently being assessed.

Other: Expenses directly related to the Master LLC are charged to the
Master LLC. Other operating expenses shared by several funds are
prorated among those funds on the basis of relative net assets or other
appropriate methods.

2. Derivative Financial Instruments:

The Master LLC may engage in various portfolio investment strategies
both to increase the return of the Master LLC and to economically hedge,
or protect, their exposure to certain risks such as credit risk, equity risk,
interest rate risk and foreign currency exchange rate risk. Losses may arise
if the value of the contract decreases due to an unfavorable change in the
value of the underlying security or if the counter-party does not perform
under the contract. The Master LLC may mitigate counterparty risk through
master netting agreements included within an International Swap and
Derivatives Association, Inc. (“ISDA”) Master Agreement between the Master
LLC and each of its counterparties. The ISDA Master Agreement allows the
Master LLC to offset with its counterparty certain derivative financial instru-
ments’ payables and/or receivables with collateral held with each counter-
party. The amount of collateral moved to/from applicable counterparties is
based upon minimum transfer amounts of up to $500,000. To the extent
amounts due to the Master LLC from its counterparties are not fully collat-
eralized contractually or otherwise, the Master LLC bears the risk of loss
from the counterparty non-performance. See Note 1 “Segregation and
Collateralization” for information with respect to collateral practices.

The Master LLC’s maximum risk of loss from counterparty credit risk on
over-the-counter derivatives is generally the aggregate unrealized gain in
excess of any collateral pledged by the counterparty to the Master LLC.
Certain ISDA Master Agreements allow counterparties to over-the-counter
derivatives to terminate derivative contracts prior to maturity in the event

76 ANNUAL REPORT AUGUST 31, 2009

Notes to Financial Statements (continued) Master Senior Floating Rate LLC

the Master LLC’s net assets decline by a stated percentage or the Master
LLC fails to meet the terms of its ISDA Master Agreements, which would
cause the Master LLC to accelerate payment of any net liability owed to the
counterparty.

Foreign Currency Exchange Contracts: The Master LLC may enter into for-
eign currency exchange contracts as an economic hedge against either
specific transactions or portfolio positions (foreign currency exchange rate
risk). A foreign currency exchange contract is an agreement between two
parties to buy and sell a currency at a set exchange rate on a future date.
Foreign currency exchange contracts, when used by the Master LLC, help
to manage the overall exposure to the foreign currency backing some of
the investments held by the Master LLC. The contract is marked-to-market
daily and the change in market value is recorded by the Master LLC as an
unrealized gain or loss. When the contract is closed, the Master LLC records
a realized gain or loss equal to the difference between the value at the
time it was opened and the value at the time it was closed. The use of for-
eign currency exchange contracts involves the risk that counterparties may
not meet the terms of the agreement or unfavorable movements in the
value of a foreign currency relative to the US dollar.

Swaps: The Master LLC may enter into swap agreements, in which the
Master LLC and a counterparty agree to make periodic net payments on a
specified notional amount. These periodic payments received or made by
the Master LLC are recorded in the accompanying Statement of Operations
as realized gains or losses, respectively. Swaps are marked-to-market daily
and changes in value are recorded as unrealized appreciation (deprecia-
tion). When the swap is terminated, the Master LLC will record a realized
gain or loss equal to the difference between the proceeds from (or cost
of) the closing transaction and the Master LLC’s basis in the contract, if
any. Swap transactions involve, to varying degrees, elements of interest
rate, credit and market risk in excess of the amounts recognized on the
Statement of Assets and Liabilities. Such risks involve the possibility that
there will be no liquid market for these agreements, that the counterparty
to the agreements may default on its obligation to perform or disagree
as to the meaning of the contractual terms in the agreements, and that
there may be unfavorable changes in interest rates and/or market values
associated with these transactions.

• Credit default swaps — The Master LLC may enter into credit default
swaps to manage its exposure to the market or certain sectors of the
market, to reduce its risk exposure to defaults of corporate and/or
sovereign issuers or to create exposure to corporate and/or sovereign
issuers to which it is not otherwise exposed (credit risk). The Master LLC
enters into credit default agreements to provide a measure of protec-
tion against the default of an issuer (as buyer of protection) and/or
gain credit exposure to an issuer to which it is not otherwise exposed
(as seller of protection). The Master LLC may either buy or sell (write)
credit default swaps on single-name issuers (corporate or sovereign)
or traded indexes. Credit default swaps on single-name issuers are
agreements in which the buyer pays fixed periodic payments to the
seller in consideration for a guarantee from the seller to make a

specific payment should a negative credit event take place (e.g., bank-
ruptcy, failure to pay, obligation accelerators, repudiation, moratorium or
restructuring). Credit default swaps on traded indexes are agreements
in which the buyer pays fixed periodic payments to the seller in consid-
eration for a guarantee from the seller to make a specific payment
should a write-down, principal or interest shortfall or default of all or
individual underlying securities included in the index occurs. As a buyer,
the Master LLC will either receive from the seller an amount equal to
the notional amount of the swap and deliver the referenced security or
underlying securities comprising of an index or receive a net settlement
of cash equal to the notional amount of the swap less the recovery
value of the security or underlying securities comprising of an index. As
a seller (writer), the Master LLC will either pay the buyer an amount
equal to the notional amount of the swap and take delivery of the refer-
enced security or underlying securities comprising of an index or pay a
net settlement of cash equal to the notional amount of the swap less
the recovery value of the security or underlying securities comprising
of an index.

       Derivatives Not Accounted for as Hedging Instruments under Financial 
   Accounting Standards Board Statement of Financial Accounting Standards 
     No. 133, “Accounting for Derivative Instruments and Hedging Activities” 
Master Senior Floating Rate LLC           
Values of Derivative Instruments as of August 31, 2009*
  Asset Derivatives           Liability Derivatives 
         Statement         Statement   
  of Assets and       of Assets and   
  Liabilities         Liabilities   
  Location  Value    Location  Value 
       Unrealized       Unrealized   
       appreciation       depreciation   
       on foreign       on foreign     
       currency       curency     
Foreign currency exchange       exchange       exchange     
   contracts       contracts  $38,692   contracts    $239,614 
         Unrealized   
         depreciation   
Credit contracts    —   on swaps    290,086 
Total    $38,692      $529,700 
   * For open derivative instruments as of August 31, 2009, see the Schedule 
       of Investments, which is also indicative of activity for the year ended   
       August 31, 2009.             
         The Effect of Derivative Instruments on the Statement of Operations 
Year Ended August 31, 2009
Net Realized Gain (Loss) From Derivatives Recognized in Income
Foreign
Currency
Exchange
  Contracts    Swaps    Total 
Foreign currency exchange             
   contracts  $ 719,893    —  $ 719,893 
Credit contracts    —  $ 46,864  $ 46,864 
Total  $ 719,893  $ 46,864  $ 766,757 

ANNUAL REPORT AUGUST 31, 2009 77

Notes to Financial Statements (continued) Master Senior Floating Rate LLC

Net Change in Unrealized Appreciation/Depreciation
on Derivatives Recognized in Income
Foreign
Currency
Exchange
  Contracts  Swaps  Total 
Foreign exchange       
contracts  $ (858,335)  —  $ (858,335) 
Credit contracts  —  $ (348,501)  $ (348,501) 
Total  $ (858,335)  $ (348,501)  $(1,206,836) 

3. Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America
Corporation (“BAC”) are the largest stockholders of BlackRock, Inc.
(“BlackRock”). BAC became a stockholder of BlackRock following its
acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1,
2009. Prior to that date, both PNC and Merrill Lynch were considered
affiliates of the Master LLC under the 1940 Act. Subsequent to the
acquisition, PNC remains an affiliate, but due to the restructuring of
Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be
an affiliate under the 1940 Act.

The Master LLC entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Manager”), the Master LLC’s investment
advisor, an indirect, wholly owned subsidiary of BlackRock, to provide
investment advisory and administration services.

The Manager is responsible for the management of the Master LLC’s portfo-
lio and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Master LLC. For such
services, the Master LLC pays the Manager a monthly fee at an annual rate
of 0.95% of the average daily value of the Master LLC’s net assets.

The Manager has entered into a separate sub-advisory agreement with
BlackRock Financial Management, Inc. (“BFM”), an affiliate the Manager,
under which the Manager pays BFM for services it provides, monthly fee
that is a percentage of the investment advisory fee paid by the Master LLC
to the Manager.

The Manager has agreed to waive its advisory fee by the amount of invest-
ment advisory fees the Master LLC pays to the Manager indirectly through
its investment in affiliated money market funds. This amount is shown as
fees waived by advisor in the Statement of Operations.

For the year ended August 31, 2009, the Master LLC reimbursed the
Advisor $8,441 for certain accounting services, which are included in
accounting services in the Statement of Operations.

Certain officers and/or directors of the Master LLC are officers and/or
directors of BlackRock or its affiliates. The Master LLC reimburses the
Manager for compensation to the Master LLC’s Chief Compliance Officer.

4. Investments:

Purchases and sales (including paydowns) of investments, excluding
short-term securities, for the year ended August 31, 2009 were
$196,913,499 and $259,646,559, respectively.

5. Market and Credit Risk:

In the normal course of business, the Master LLC invests in securities and
enters into transactions where risks exist due to fluctuations in the market
(market risk) or failure of the issuer of a security to meet all its obligations
(credit risk). The value of securities held by the Master LLC may decline
in response to certain events, including those directly involving the issuers
whose securities are owned by the Master LLC; conditions affecting the
general economy; overall market changes; local, regional or global political,
social or economic instability; and currency and interest rate and price
fluctuations. Similar to credit risk, the Master LLC may be exposed to
counterparty risk, or the risk that an entity with which the Master LLC
has unsettled or open transactions may default. Financial assets, which
potentially expose the Master LLC to credit and counterparty risks, consist
principally of investments and cash due from counterparties. The extent
of the Master LLCs’ exposure to credit and counterparty risks with respect
to these financial assets is approximated by their value recorded in the
Master LLCs’ Statement of Assets and Liabilities.

6. Commitments:

The Master LLC may invest in floating rate loans. In connection with these
investments, the Master LLC may also enter into unfunded corporate loan
(“commitments”). Commitments may obligate the Master LLC to furnish
temporary financing to a borrower until permanent financing can be
arranged. In connection with these commitments, the Master LLC earns a
commitment fee, typically set as a percentage of the commitment amount.

Such fee income, which is classified in the Statement of Operations
as facility and other fees, is recognized ratably over the commitment
period. As of August 31, 2009 the Master LLC had the following unfunded
loan commitments:

    Value of 
  Unfunded  Underlying 
  Commitment  Loan 
Borrower  (000)  (000) 
Big West Oil  $ 562  $ 517 
Smurfit Corp.  $1,039  $ 971 
Vought Aircraft Industries, Inc.  $2,185  $2,043 

7. Short-Term Borrowings:

The Master LLC, along with certain other funds managed by the Manager
and its affiliates, is a party to a $500 million credit agreement with a
group of lenders, which expired November 2008 and was subsequently
renewed until November 2009. The Master LLC may borrow under the

78 ANNUAL REPORT AUGUST 31, 2009

Notes to Financial Statements (concluded) Master Senior Floating Rate LLC

credit agreement to fund shareholder redemptions and for other lawful
purposes other than for leverage. The Master LLC may borrow up to the
maximum amount allowable under the Master LLC’s current Prospectus
and Statement of Additional Information, subject to various other legal,
regulatory or contractual limits. The Master LLC paid its pro rata share of a
0.02% upfront fee on the aggregate commitment amount based on its net
assets as of October 31, 2008. The Master LLC pays a commitment fee of
0.08% per annum based on the Master LLC’s pro rata share of the unused
portion of the credit agreement, which is included in miscellaneous in the
Statement of Operations. Amounts borrowed under the credit agreement
bear interest at a rate equal to the higher of (a) federal funds effective rate
and (b) reserve adjusted one month LIBOR, plus, in each case, the higher
of (i) 1.50% and (ii) 50% of the CDX Index (as defined in the credit agree-
ment) in effect from time to time. For the year ended August 31, 2009 the
daily weighted average interest rate was 2.00%.

8. Subsequent Events:

Management has evaluated the impact of all subsequent events on the
Master LLC through October 30, 2009, the date the financial statements
were issued, and has determined that there were no subsequent events
requiring adjustment or disclosure in the financial statements.

ANNUAL REPORT AUGUST 31, 2009 79

Report of Independent Registered Public Accounting Firm Master Senior Floating Rate LLC

To the Investors and Board of Directors of Master Senior
Floating Rate LLC:

We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of Master Senior Floating Rate LLC
(the “Master LLC”) as of August 31, 2009, and the related statement of
operations for the year then ended, the statements of changes in net
assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These finan-
cial statements and financial highlights are the responsibility of the Master
LLC’s management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free of
material misstatement. The Master LLC is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting.
Our audits included consideration of internal control over financial report-
ing as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Master LLC’s internal control over financial reporting.

Accordingly, we express no such opinion. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and signifi-
cant estimates made by management, as well as evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2009, by correspondence with the cus-
todian and financial intermediaries; where replies were not received from
financial intermediaries, we performed other auditing procedures. We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Master Senior Floating Rate LLC as of August 31, 2009, the results of its
operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with account-
ing principles generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
October 30, 2009

80 ANNUAL REPORT AUGUST 31, 2009

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors or the Board of Trustees, as the case may be (each,
a “Board,” and collectively, the “Boards,” and the members of which are
referred to as “Board Members”) of each of BlackRock Defined Opportunity
Credit Trust (“BHL”), BlackRock Diversified Income Strategies Fund, Inc.
(“DVF”), BlackRock Floating Rate Income Strategies Fund, Inc. (“FRA”),
BlackRock Limited Duration Income Trust (“BLW,” and together with BHL,
DVF, and FRA, each a “Fund” and, collectively, the “Funds”) and Master
Senior Floating Rate Fund LLC (the “Master LLC”) met on April 14, 2009
and May 28 – 29, 2009 to consider the approval of its respective fund’s
investment advisory agreement (each, an “Advisory Agreement”) with
BlackRock Advisors, LLC (the “Manager”), each fund’s investment advisor.
The Board of each of the Funds and the Master LLC also considered the
approval of the sub-advisory agreement (each, a “Sub-Advisory Agreement”)
between each such Fund or the Master LLC, as applicable, the Manager
and BlackRock Financial Management, Inc. (the “Sub-Advisor”). BlackRock
Senior Floating Rate Fund, Inc. (“Senior Floating Rate”) and BlackRock
Senior Floating Rate Fund II, Inc. (“Senior Floating Rate II,” and together
with Senior Floating Rate, each, a “Feeder Fund” and together, the “Feeder
Funds”) currently invest substantially all of their investable assets in the
Master LLC; accordingly, the Boards of each of the Feeder Funds also
considered the approval of the Advisory Agreement and the Sub-Advisory
Agreement between the Master LLC, the Manager and the Sub-Advisor. The
Feeder Funds do not require investment advisory services because all of
their investments are made at the Master LLC level.

The Manager and the Sub-Advisor are referred to herein as “BlackRock.”
The Advisory Agreements and the Sub-Advisory Agreements are referred
to herein as the “Agreements.” Unless otherwise indicated, references to
actions taken by the “Board” or the “Boards” shall mean each Board
acting independently with regard to its respective fund.

Activities and Composition of the Boards

Each Board consists of twelve individuals, ten of whom are not “interested
persons” of any of the Funds, the Feeder Funds or the Master LLC as
defined in the Investment Company Act of 1940, as amended (the “1940
Act”) (the “Independent Board Members”). The Board Members of each
fund are responsible for the oversight of the operations of such fund and
perform the various duties imposed on the directors of investment com-
panies by the 1940 Act. The Independent Board Members have retained
independent legal counsel to assist them in connection with their duties.
The Chairman of each Board is an Independent Board Member. Each
Board has established five standing committees: an Audit Committee,
a Governance and Nominating Committee, a Compliance Committee,
a Performance Oversight Committee and an Executive Committee, each
of which is composed of Independent Board Members (except for the
Executive Committee, which has one interested Board Member) and is
chaired by an Independent Board Member. In addition, each Board has
established an Ad Hoc Committee on Auction Market Preferred Shares.

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the
continuation of the Agreements on an annual basis. In connection
with this process, each Board assessed, among other things, the nature,
scope and quality of the services provided to its respective fund by the

personnel of BlackRock and its affiliates, including investment manage-
ment, administrative and shareholder services, oversight of fund account-
ing and custody, marketing services and assistance in meeting applicable
legal and regulatory requirements.

Throughout the year, the Boards, acting directly and through their com-
mittees, consider at each of their meetings factors that are relevant to
their annual consideration of the renewal of the Agreements, including
the services and support provided by BlackRock to the funds and their
shareholders. Among the matters the Boards considered were: (a) invest-
ment performance for one-, three- and five-year periods, as applicable,
against peer funds, and applicable benchmarks, if any, as well as senior
management and portfolio managers’ analysis of the reasons for any out-
performance or underperformance against its peers; (b) fees, including
advisory fees, administration fees with respect to the Feeder Funds, and
other amounts paid to BlackRock and its affiliates by the funds for services
such as call center and fund accounting, and, in the case of the Feeder
Funds, transfer agency, marketing and distribution; (c) fund operating
expenses; (d) the resources devoted to, and compliance reports relating
to, the funds’ investment objectives, policies and restrictions, (e) the funds’
compliance with their Codes of Ethics and compliance policies and proce-
dures; (f) the nature, cost and character of non-investment management
services provided by BlackRock and its affiliates; (g) BlackRock’s and other
service providers’ internal controls; (h) BlackRock’s implementation of the
proxy voting policies approved by the Boards; (i) execution quality of port-
folio transactions; (j) BlackRock’s implementation of the funds’ valuation
and liquidity procedures; and (k) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 14, 2009 meeting, each Board
requested and received materials specifically relating to the Agreements.
Each Board is engaged in an ongoing process with BlackRock to continu-
ously review the nature and scope of the information provided to better
assist its deliberations. The materials provided in connection with the April
meeting included (a) information independently compiled and prepared by
Lipper, Inc. (“Lipper”) on Fund and Feeder Fund fees and expenses, and
the investment performance of each Fund and Feeder Fund as compared
with a peer group of funds as determined by Lipper (collectively, “Peers”);
(b) information on the profitability of the Agreements to BlackRock and a
discussion of fall-out benefits to BlackRock and its affiliates and significant
shareholders; (c) a general analysis provided by BlackRock concerning
investment advisory fees charged to other clients, such as institutional
clients and open-end funds, under similar investment mandates, as well
as the performance of such other clients; (d) the impact of economies
of scale; (e) a summary of aggregate amounts paid by each Fund, each
Feeder Fund and the Master LLC to BlackRock and (f) an internal com-
parison of management fees classified by Lipper, if applicable.

At an in-person meeting held on April 14, 2009, each Board reviewed
materials relating to its consideration of the Agreements. As a result of the
discussions that occurred during the April 14, 2009 meeting, the Boards
presented BlackRock with questions and requests for additional informa-
tion and BlackRock responded to these requests with additional written
information in advance of the May 28 – 29, 2009 Board meeting.

ANNUAL REPORT AUGUST 31, 2009 81

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

At an in-person meeting held on May 28 – 29, 2009, each Board, including
the Independent Board Members, unanimously approved the continuation
of the Advisory Agreement between the Manager and its Fund or the Master
LLC, as applicable, and the Sub-Advisory Agreement between its Fund or
the Master LLC, as applicable, the Manager and the Sub-Advisor, each for
a one-year term ending June 30, 2010. The Board of Directors of each
Feeder Fund, including the Independent Board Members, also considered
the continuation of the Agreements with respect to the Master LLC and
found the Agreements to be satisfactory. The Boards considered all factors
they believed relevant with respect to the Funds and the Master LLC, includ-
ing, among other factors: (a) the nature, extent and quality of the services
provided by BlackRock; (b) the investment performance of the Funds, the
Feeder Funds and BlackRock portfolio management; (c) the advisory fee
and the cost of the services and profits to be realized by BlackRock and
certain affiliates from the relationship with the Funds, the Feeder Funds
and the Master LLC; (d) economies of scale; and (e) other factors.

Each Board also considered other matters it deemed important to the
approval process, such as services related to the valuation and pricing of
its respective Fund’s or the Master LLC’s portfolio holdings, as applicable,
direct and indirect benefits to BlackRock and its affiliates and significant
shareholders from their relationship with such Fund, the Feeder Funds or
the Master LLC and advice from independent legal counsel with respect
to the review process and materials submitted for the Board’s review. The
Boards noted the willingness of BlackRock personnel to engage in open,
candid discussions with the Boards. The Boards did not identify any par-
ticular information as controlling, and each Board Member may have
attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services: Each Board, including its
Independent Board Members, reviewed the nature, extent and quality of
services provided by BlackRock, including the investment advisory services
and the resulting performance of its respective Fund, Feeder Fund, or the
Master LLC, as applicable. Throughout the year, each Board compared its
respective Fund’s or Feeder Fund’s performance to the performance of a
comparable group of closed-end funds, and the performance of at least
one relevant benchmark, if any. The Boards met with BlackRock’s senior
management personnel responsible for investment operations, including
the senior investment officers. Each Board also reviewed the materials pro-
vided by its respective Fund’s or the Master LLC’s portfolio management
team discussing such fund’s performance and such fund’s investment
objective, strategies and outlook.

Each Board considered, among other factors, the number, education and
experience of BlackRock’s investment personnel generally and its respec-
tive Fund’s or the Master LLC’s portfolio management team, investments
by portfolio managers in the funds they manage, BlackRock’s portfolio
trading capabilities, BlackRock’s use of technology, BlackRock’s commit-
ment to compliance and BlackRock’s approach to training and retaining
portfolio managers and other research, advisory and management per-
sonnel. Each Board also reviewed a general description of BlackRock’s
compensation structure with respect to its respective Fund’s or the Master
LLC’s portfolio management team and BlackRock’s ability to attract and
retain high-quality talent.

In addition to advisory services, each Board considered the quality of the
administrative and non-investment advisory services provided to its respec-
tive Fund, Feeder Fund or the Master LLC. BlackRock and its affiliates and
significant shareholders provide the Funds, the Feeder Funds and the
Master LLC with certain administrative services, in the case of the Feeder
Funds, transfer agency and shareholder services, and other services (in
addition to any such services provided to the funds by third parties) and
officers and other personnel as are necessary for the operations of the
funds. In addition to investment advisory services, BlackRock and its affili-
ates provide the Funds, the Feeder Funds and the Master LLC with other
services, including (i) preparing disclosure documents, such as the pros-
pectus and the statement of additional information in connection with the
initial public offering and periodic shareholder reports; (ii) preparing com-
munications with analysts to support secondary market trading of the funds;
(iii) assisting with daily accounting and pricing; (iv) preparing periodic filings
with regulators and stock exchanges; (v) overseeing and coordinating the
activities of other service providers; (vi) organizing Board meetings and
preparing the materials for such Board meetings; (vii) providing legal and
compliance support; and (viii) performing other administrative functions
necessary for the operation of the funds, such as tax reporting, fulfilling reg-
ulatory filing requirements, and call center services. The Boards reviewed the
structure and duties of BlackRock’s fund administration, accounting, legal
and compliance departments and considered BlackRock’s policies and pro-
cedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: Each Board,
including its Independent Board Members, also reviewed and considered
the performance history of its respective Fund, Feeder Fund, or the Master
LLC, as applicable. In preparation for the April 14, 2009 meeting, each
Board was provided with reports, independently prepared by Lipper, which
included a comprehensive analysis of its respective Fund’s or Feeder
Fund’s performance. The Boards also reviewed a narrative and statistical
analysis of the Lipper data that was prepared by BlackRock, which ana-
lyzed various factors that affect Lipper’s rankings. In connection with its
review, each Board received and reviewed information regarding the invest-
ment performance of its respective Fund or Feeder Fund as compared to
a representative group of similar funds as determined by Lipper and to
all funds in such Fund’s or Feeder Fund’s applicable Lipper category. Each
Board was provided with a description of the methodology used by Lipper
to select peer funds. Each Board regularly reviews the performance of its
respective Fund, Feeder Fund, or the Master LLC throughout the year.

The Board of each of FRA, BLW and Senior Floating Rate I noted that, in
general, FRA, BLW and Senior Floating Rate I performed better than their
respective Peers in that the performance of each of FRA, BLW and Senior
Floating Rate I was at or above the median of its respective Lipper perform-
ance universe in each of the one-, three- and five-year periods reported.

The Board of BHL noted that, in general, BHL performed better than its
Peers in that BHL’s performance was at or above the median of its Lipper
performance universe in the since inception period reported.

The Board of Senior Floating Rate II noted that although Senior Floating
Rate II underperformed its Peers in at least two of the one-, three- and five-
year periods reported, such underperformance was not greater than 10% of

82 ANNUAL REPORT AUGUST 31, 2009

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

the median return of its Peers for any of the periods. The Board concluded
that BlackRock was committed to providing the resources necessary to
assist the portfolio managers and to continue improving Senior Floating
Rate II’s performance. Based on its review, the Board generally was satis-
fied with BlackRock’s efforts to manage Senior Floating Rate II.

The Board of DVF noted that DVF performed below the median of its Lipper
performance universe in the one-year, three-year and since inception peri-
ods reported. The Board and BlackRock reviewed the reasons for DVF’s
underperformance during these periods compared with its Peers. The Board
was informed that, among other things, DVF’s credit allocation for most of
the period was overweight CCC and B and underweight BB. Since lower
quality credits underperformed higher quality during the period, this nega-
tively impacted performance.

For DVF, the Board and BlackRock discussed BlackRock’s commitment to
providing the resources necessary to assist the portfolio managers and to
improve DVF’s performance.

C. Consideration of the Advisory Fees and the Cost of the Services
and Profits to be Realized by BlackRock and its Affiliates from their
Relationship with the Fund: Each Board, including its Independent Board
Members, reviewed its respective Fund’s or the Master LLC’s contractual
advisory fee rates compared with the other funds in its Lipper category.
Each Board also compared its respective Fund’s or the Feeder Funds’ total
expenses, as well as actual management fees, to those of other compa-
rable funds. Each Board considered the services provided and the fees
charged by BlackRock to other types of clients with similar investment
mandates, including separately managed institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s finan-
cial condition and profitability with respect to the services it provided the
Funds and the Master LLC. The Boards were also provided with a profitability
analysis that detailed the revenues earned and the expenses incurred by
BlackRock for services provided to the Funds, the Feeder Funds and the
Master LLC. The Boards reviewed BlackRock’s profitability with respect to the
Funds and the Master LLC and other funds the Boards currently oversee for
the year ended December 31, 2008 compared to available aggregate prof-
itability data provided for the year ended December 31, 2007. The Boards
reviewed BlackRock’s profitability with respect to other fund complexes man-
aged by the Manager and/or its affiliates. The Boards reviewed BlackRock’s
assumptions and methodology of allocating expenses in the profitability
analysis, noting the inherent limitations in allocating costs among various
advisory products. The Boards recognized that profitability may be affected
by numerous factors including, among other things, fee waivers by the
Manager, the types of funds managed, expense allocations and business
mix, and therefore comparability of profitability is somewhat limited.

The Boards noted that, in general, individual fund or product line profitability
of other advisors is not publicly available. Nevertheless, to the extent such
information is available, the Boards considered BlackRock’s overall operat-
ing margin compared to the operating margin for leading investment man-
agement firms whose operations include advising closed-end funds, among
other product types. The comparison indicated that operating margins for
BlackRock with respect to its registered funds are generally consistent with

margins earned by similarly situated publicly traded competitors. In addi-
tion, the Boards considered, among other things, certain third party data
comparing BlackRock’s operating margin with that of other publicly-traded
asset management firms, which concluded that larger asset bases do not,
in themselves, translate to higher profit margins.

In addition, the Boards considered the cost of the services provided
to the Funds, the Feeder Funds and the Master LLC by BlackRock, and
BlackRock’s and its affiliates’ profits relating to the management and dis-
tribution of the Funds, the Feeder Funds and the Master LLC and the other
funds advised by BlackRock and its affiliates. As part of its analysis, the
Boards reviewed BlackRock’s methodology in allocating its costs to the
management of the funds. The Board also considered whether BlackRock
has the financial resources necessary to attract and retain high quality
investment management personnel to perform its obligations under the
Agreements and to continue to provide the high quality of services that
is expected by the Boards.

The Board of each of DVF, FRA and BLW noted that its respective Fund paid
contractual management fees, which do not take into account any expense
reimbursement or fee waivers, lower than or equal to the median contrac-
tual management fees paid by such Fund’s Peers.

The Board of Senior Floating Rate I noted that, although Senior Floating
Rate I paid contractual management fees higher than the median of its
Peers, its actual total expenses were lower than or equal to the median of
its Peers.

The Board of Senior Floating Rate II noted that, although Senior Floating Rate
II paid contractual management fees higher than the median of its Peers, its
actual total expenses were within 5% of the actual total expense median.

The Board of BHL noted that BHL pays contractual management fees that
are higher than the median of its Peers and considered this higher fee in
light of the quality of services provided by the Manager and the investment
objectives and policies of BHL. The Board also noted that BHL is included
in a Lipper Peer group where most funds commenced operations between
6 and 10 years ago. There are 3 Peer funds that were offered recently and
are more appropriate funds for comparison as they contain a more appro-
priate pricing structure for bank loan products offered in the current market
environment. These recently offered funds are similar portfolios that are
being offered to take advantage of current market opportunities. BHL is
competitive when compared to these 3 Peer funds.

D. Economies of Scale: Each Board, including its Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of its respective Fund or the Master LLC increase
and whether there should be changes in the advisory fee rate or structure
in order to enable such Fund or the Master LLC to participate in these
economies of scale, for example through the use of breakpoints in the
advisory fee based upon the assets of such Fund or the Master LLC, as
applicable. The Boards considered that the funds in the BlackRock fund
complex share some common resources and, as a result, an increase in
the overall size of the complex could permit each fund to incur lower
expenses than it would otherwise as a stand-alone entity. The Boards

ANNUAL REPORT AUGUST 31, 2009 83

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

also considered BlackRock’s overall operations and its efforts to expand
the scale of, and improve the quality of, its operations.

The Boards noted that most closed-end fund complexes do not have fund
level breakpoints because closed-end funds generally do not experience
substantial growth after the initial public offering and each fund is man-
aged independently consistent with its own investment objectives. The
Boards noted that only one closed-end fund in the Fund Complex has
breakpoints in its fee structure. Information provided by Lipper also
revealed that only one closed-end fund complex used a complex-level
breakpoint structure.

E. Other Factors: The Boards also took into account other ancillary or “fall-
out” benefits that BlackRock or its affiliates and significant shareholders
may derive from their relationship with the Funds, the Feeder Funds and
the Master LLC, both tangible and intangible, such as BlackRock’s ability
to leverage its investment professionals who manage other portfolios, an
increase in BlackRock’s profile in the investment advisory community, and
the engagement of BlackRock’s affiliates and significant shareholders as
service providers to the Funds, the Feeder Funds and the Master LLC,
including for administrative, and in the case of the Feeder Funds transfer
agency, and distribution services. The Boards also noted that BlackRock
may use third-party research obtained by soft dollars generated by certain
mutual fund transactions to assist itself in managing all or a number of
its other client accounts.

In connection with their consideration of the Agreements, the Boards also
received information regarding BlackRock’s brokerage and soft dollar prac-
tices. The Boards received reports from BlackRock, which included informa-
tion on brokerage commissions and trade execution practices throughout
the year.

Conclusion

Each Board, including its Independent Board Members, unanimously
approved the continuation of the Advisory Agreement between its respec-
tive Fund or the Master LLC and the Manager for a one-year term ending
June 30, 2010 and, as applicable, the Sub-Advisory Agreement between
such Fund or the Master LLC, the Manager and Sub-Advisor for a one-year
term ending June 30, 2010. Based upon its evaluation of all these factors
in their totality, each Board, including its Independent Board Members,
was satisfied that the terms of the Agreements were fair and reasonable
and in the best interest of its respective Fund or the Master LLC and its
shareholders. The Board of Directors of each Feeder Fund, including the
Independent Board Members, also considered the continuation of the
Agreements with respect to the Master LLC and found the Agreements to
be satisfactory. In arriving at a decision to approve the Agreements, each
Board did not identify any single factor or group of factors as all-important
or controlling, but considered all factors together, and different Board
Members may have attributed different weights to the various factors
considered. The Independent Board Members were also assisted by the
advice of independent legal counsel in making this determination. The
contractual fee arrangements for each Fund or the Master LLC reflects
the results of several years of review by such Fund’s and the Master LLC’s
Board Members and predecessor Board Members, as applicable, and dis-
cussions between such Board Members (and predecessor Board Members)
and BlackRock. Certain aspects of the arrangements may be the subject
of more attention in some years than in others, and the Board Members’
conclusions may be based in part on their consideration of these arrange-
ments in prior years.

84 ANNUAL REPORT AUGUST 31, 2009

Automatic Dividend Reinvestment Plan

How the Plan Works — The Funds offer a Dividend Reinvestment Plan
(the “Plan”) under which income and capital gains dividends paid by
a Fund are automatically reinvested in additional Common Shares of the
Fund. The Plan is administered on behalf of the shareholders by BNY
Mellon Shareowner Services for Senior Floating Rate and Senior Floating
Rate II and Computershare Trust Company, N.A. for BHL, DVF, FRA and BLW
(individually, the “Plan Agent” or together, the “Plan Agents”). Under the Plan,
whenever a Fund declares a dividend, participants in the Plan will receive
the equivalent in Common Shares of the Fund. The Plan Agents will acquire
the shares for the participant’s account either (i) through receipt of addi-
tional unissued but authorized shares of the Funds (“newly issued shares”)
or (ii) by purchase of outstanding Common Shares on the open market on
the New York Stock Exchange, as applicable, or elsewhere. If, on the divi-
dend payment date, the Fund’s net asset value per share is equal to or
less than the market price per share plus estimated brokerage commis-
sions (a condition often referred to as a “market premium”), the Plan
Agents will invest the dividend amount in newly issued shares. If the Fund’s
net asset value per share is greater than the market price per share (a con-
dition often referred to as a “market discount”), the Plan Agents will invest
the dividend amount by purchasing on the open market additional shares.
If the Plan Agents are unable to invest the full dividend amount in open
market purchases, or if the market discount shifts to a market premium
during the purchase period, the Plan Agents will invest any uninvested por-
tion in newly issued shares. The shares acquired are credited to each
shareholder’s account. The amount credited is determined by dividing the
dollar amount of the dividend by either (i) when the shares are newly
issued, the net asset value per share on the date the shares are issued or
(ii) when shares are purchased in the open market, the average purchase
price per share.

Participation in the Plan — Participation in the Plan is automatic, that
is, a shareholder is automatically enrolled in the Plan when he or she pur-
chases shares of Common Shares of the Funds unless the shareholder
specifically elects not to participate in the Plan. Shareholders who elect not
to participate will receive all dividend distributions in cash. Shareholders
who do not wish to participate in the Plan must advise their Plan Agent in
writing (at the address set forth below) that they elect not to participate
in the Plan. Participation in the Plan is completely voluntary and may
be terminated or resumed at any time without penalty by writing to the
Plan Agent.

Benefits of the Plan — The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Funds.
The Plan promotes a long-term strategy of investing at a lower cost. All
shares acquired pursuant to the Plan receive voting rights. In addition, if
the market price plus commissions of a Fund’s shares is above the net
asset value, participants in the Plan will receive shares of the Funds for
less than they could otherwise purchase them and with a cash value
greater than the value of any cash distribution they would have received.
However, there may not be enough shares available in the market to make
distributions in shares at prices below the net asset value. Also, since the
Funds do not redeem shares, the price on resale may be more or less than
the net asset value.

Plan Fees — There are no enrollment fees or brokerage fees for
participating in the Plan. The Plan Agents’ service fees for handling the
reinvestment of distributions are paid for by the Funds. However, broker-
age commissions may be incurred when the Funds purchase shares on
the open market and shareholders will pay a pro rata share of any
such commissions.

Tax Implications — The automatic reinvestment of dividends and distribu-
tions will not relieve participants of any federal, state or local income tax
that may be payable (or required to be withheld) on such dividends.
Therefore, income and capital gains may still be realized even though
shareholders do not receive cash. If, when the Funds’ shares are trading at
a market premium, the Funds issue shares pursuant to the Plan that have
a greater fair market value than the amount of cash reinvested, it is possi-
ble that all or a portion of the discount from the market value (which may
not exceed 5% of the fair market value of the Funds’ shares) could be
viewed as a taxable distribution. If the discount is viewed as a taxable dis-
tribution, it is also possible that the taxable character of this discount
would be allocable to all the shareholders, including shareholders who do
not participate in the Plan. Thus, shareholders who do not participate in the
Plan might be required to report as ordinary income a portion of their dis-
tributions equal to their allocable share of the discount.

Contact Information — All correspondence concerning the Plan, including
any questions about the Plan, should be directed to the Plan Agent at
the following addresses: Shareholders of Senior Floating Rate and Senior
Floating Rate II should contact BNY Mellon Shareowner Services, P.O. Box
385035, Pittsburgh, PA 15252-8035 Telephone: (866) 216-0242 and
shareholders of BHL, DVF, FRA and BLW should contact Computershare Trust
Company, N.A., P.O. Box 43078, Providence, RI 02940-3078 Telephone:
(800) 699-1BFM or overnight correspondence should be directed to the
Plan Agent at 250 Royall Street, Canton, MA 02021.


Officers and Directors         
        Number of BlackRock-   
        Advised Registered   
  Position(s)  Length    Investment Companies   
  Held with  of Time    (“RICs”) Consisting of   
Name, Address  Funds/  Served as    Investment Portfolios  Public 
and Year of Birth  Master LLC  a Director2  Principal Occupation(s) During Past 5 Years  (“Portfolios”) Overseen  Directorships 
     Non-Interested Directors1         
Richard E. Cavanagh  Chairman  Since  Trustee, Aircraft Finance Trust since 1999; Director, The Guardian  104 RICS consisting of  Arch Chemical 
40 East 52nd Street  of the Board  2007  Life Insurance Company of America since 1998; Trustee, Educational  101 Portfolios  (chemical and allied 
New York, NY 10022  and Director    Testing Service from 1997 to 2009 and Chairman from 2005 to 2009    products) 
1946      Senior Advisor, The Fremont Group since 2008 and Director thereof     
      since 1996; Adjunct Lecturer, Harvard University since 2007; President     
and Chief Executive Officer of The Conference Board, Inc. (global
      business research organization) from 1995 to 2007.     
Karen P. Robards  Vice Chair of  Since  Partner of Robards & Company, LLC (financial advisory firm) since  104 RICs consisting of  AtriCure, Inc. 
40 East 52nd Street  the Board,  2007  1987; Co-founder and Director of the Cooke Center for Learning and  101 Portfolios  (medical devices); 
New York, NY 10022  Chair of    Development, (a not-for-profit organization) since 1987; Director of    Care Investment 
1950  the Audit    Enable Medical Corp. from 1996 to 2005.    Trust, Inc. (health 
  Committee        care real estate 
  and Director        investment trust) 
G. Nicholas Beckwith, III  Director  Since  Chairman and Chief Executive Officer, Arch Street Management, LLC  104 RICs consisting of  None 
40 East 52nd Street    2007  (Beckwith Family Foundation) and various Beckwith property companies  101 Portfolios   
New York, NY 10022      since 2005; Chairman of the Board of Directors, University of Pittsburgh     
1945      Medical Center since 2002; Board of Directors, Shady Side Hospital     
Foundation since 1977; Board of Directors, Beckwith Institute for
      Innovation In Patient Care since 1991; Member, Advisory Council on     
      Biology and Medicine, Brown University since 2002; Trustee, Claude     
      Worthington Benedum Foundation (charitable foundation) since 1989;     
      Board of Trustees, Chatham University since 1981; Board of Trustees,     
University of Pittsburgh since 2002; Emeritus Trustee, Shady Side
      Academy since 1977; Chairman and Manager, Penn West Industrial     
      Trucks LLC (sales, rental and servicing of material handling equipment)     
      from 2005 to 2007; Chairman, President and Chief Executive Officer,     
      Beckwith Machinery Company (sales, rental and servicing of construction   
      and equipment) from 1985 to 2005; Member of the Board of Directors,     
      National Retail Properties (REIT) from 2006 to 2007.     
Kent Dixon  Director and  Since  Consultant/Investor since 1988.  104 RICs consisting of  None 
40 East 52nd Street  Member of  2007    101 Portfolios   
New York, NY 10022  the Audit         
1937  Committee         
Frank J. Fabozzi  Director and  Since  Consultant/Editor of The Journal of Portfolio Management since 2006;  104 RICs consisting of  None 
40 East 52nd Street  Member of  2007  Professor in the Practice of Finance and Becton Fellow, Yale University,  101 Portfolios   
New York, NY 10022  the Audit    School of Management, since 2006; Adjunct Professor of Finance     
1948  Committee    and Becton Fellow, Yale University from 1994 to 2006.     
Kathleen F. Feldstein  Director  Since  President of Economics Studies, Inc. (private economic consulting  104 RICs consisting of  The McClatchy 
40 East 52nd Street    2007  firm) since 1987; Chair, Board of Trustees, McLean Hospital from  101 Portfolios  Company 
New York, NY 10022      2000 to 2008 and Trustee Emeritus thereof since 2008; Member of    (publishing) 
1941      the Board of Partners Community Healthcare, Inc. since 2005;     
Member of the Corporation of Partners HealthCare since 1995;
      Trustee, Museum of Fine Arts, Boston since 1992; Member of the     
      Visiting Committee to the Harvard University Art Museum since 2003.     
James T. Flynn  Director and  Since  Chief Financial Officer of JP Morgan & Co., Inc. from 1990 to 1995.  104 RICs consisting of  None 
40 East 52nd Street  Member of  2007    101 Portfolios   
New York, NY 10022  the Audit         
1939  Committee         
Jerrold B. Harris  Director  Since  Trustee, Ursinus College since 2000; Director, Troemner LLC  104 RICs consisting of  BlackRock Kelso 
40 East 52nd Street    2007  (scientific equipment)since 2000.  101 Portfolios  Capital Corp. 
New York, NY 10022           
1942           
86           ANNUAL REPORT                                                                                                       AUGUST 31, 2009   

Officers and Directors (continued)       
        Number of BlackRock-   
        Advised Registered   
  Position(s)  Length    Investment Companies   
  Held with  of Time    (“RICs”) Consisting of   
Name, Address  Funds/  Served as    Investment Portfolios   Public 
and Year of Birth  Master LLC  a Director2   Principal Occupation(s) During Past 5 Years  (“Portfolios”) Overseen   Directorships 
     Non-Interested Directors1 (concluded)           
R. Glenn Hubbard  Director  Since   Dean, Columbia Business School since 2004; Columbia faculty  104 RICs consisting of  ADP (data and 
40 East 52nd Street    2007   member since 1988; Co-Director, Columbia Business School’s  101 Portfolios  information services), 
New York, NY 10022       Entrepreneurship Program from 1997 to 2004; Visiting Professor,      KKR Financial 
1958       John F. Kennedy School of Government at Harvard University and the      Corporation (finance), 
       Harvard Business School since 1985 and at the University of Chicago      Metropolitan Life 
       since 1994; Chairman, U.S. Council of Economic Advisers under the      Insurance Company 
       President of the United States from 2001 to 2003.      (insurance) 
W. Carl Kester  Director  Since   George Fisher Baker Jr. Professor of Business Administration, Harvard  104 RICs consisting of  None 
40 East 52nd Street    2007   Business School; Deputy Dean for Academic Affairs, since 2006; Unit  101 Portfolios   
New York, NY 10022       Head, Finance, Harvard Business School, from 2005 to 2006; Senior       
1951       Associate Dean and Chairman of the MBA Program of Harvard Business       
       School, from 1999 to 2005; Member of the faculty of Harvard Business       
       School since 1981; Independent Consultant since 1978.       
  1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.     
  2 Date shown is the earliest date a person has served as a director for the Funds and Master LLC covered by this annual report. Following the combination 
   of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock 
   Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows directors as joining the Funds’/ 
   Master LLC’s board in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows: G. 
   Nicholas Beckwith, III, 1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; 
   Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.       
     Interested Directors3             
Richard S. Davis  President  Since  Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State Street  173 RICs  None 
40 East 52nd Street  and  2007  Research & Management Company from 2000 to 2005; Chairman of the Board  consisting of   
New York, NY 10022  Director    of Trustees, State Street Research Mutual Funds from 2000 to 2005; Chairman,  283 Portfolios   
1945      SSR Realty from 2000 to 2004.       
Henry Gabbay  Director  Since  Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock,  173 RICs  None 
40 East 52nd Street    2007  Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC  consisting of   
New York, NY 10022      from 1998 to 2007; President of BlackRock Funds and BlackRock Bond    283 Portfolios   
1947      Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end     
      funds in the BlackRock fund complex from 1989 to 2006.       
  3 Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Funds/Master LLC based on his position with BlackRock, 
   Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Funds/Master LLC based on his former positions with BlackRock, Inc. and its affiliates 
   as well as his ownership of BlackRock, Inc. and PNC Securities. Directors serve until their resignation, removal or death, or until December 31 of the year 
   in which they turn 72.         
           ANNUAL REPORT  AUGUST 31, 2009                                     87 

Officers and Directors (concluded)       
  Position(s)           
  Held with           
Name, Address  Funds/  Length of         
and Year of Birth  Master LLC  Time Served Principal Occupation(s) During Past 5 Years     
     Funds/Master LLC Officers1           
Anne F. Ackerley  President  Since         Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 2009; 
40 East 52nd Street  and Chief  2009         Chief Operating Officer of BlackRock’s Account Management Group (AMG) since 2009; Chief Operating Officer of 
New York, NY 10022  Executive           BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006. 
1962  Officer           
Brendan Kyne  Vice  Since         Director of BlackRock, Inc. since 2008; Head of Product Development and Management for BlackRock’s U.S. Retail 
40 East 52nd Street  President  2009         Group since 2009, co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008; 
New York, NY 10022             Associate of BlackRock, Inc. from 2002 to 2004.     
1977             
Neal J. Andrews  Chief  Since         Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund 
40 East 52nd Street  Financial  2007         Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. 
New York, NY 10022  Officer           
1966             
Jay M. Fife  Treasurer  Since         Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch 
40 East 52nd Street    2007         Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of 
New York, NY 10022             MLIM Fund Services Group from 2001 to 2006.     
1970             
Brian P. Kindelan  Chief  Since         Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel 
40 East 52nd Street  Compliance  2007         of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, LLC from 2001 to 2004. 
New York, NY 10022  Officer           
1959             
Howard B. Surloff  Secretary  Since         Managing Director and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.) 
40 East 52nd Street    2007         of Goldman Sachs Asset Management, L.P. from 1993 to 2006.     
New York, NY 10022             
1965             
  1 Officers of the Funds/Master LLC serve at the pleasure of the Board of Directors.     
Investment Advisor   Custodians    Transfer Agent  Accounting Agent  Independent  Legal Counsel 
BlackRock Advisors, LLC   State Street Bank  Common Shares  State Street Bank  Registered Public  Skadden, Arps, Slate, 
Wilmington, DE 19809  and Trust Company2  Computershare Trust Company, N.A.2  and Trust Company  Accounting Firm  Meagher & Flom LLP 
  Boston, MA 02101  Providence, RI 02940  Princeton, NJ 08540  Deloitte & Touche LLP  New York, NY 10036 
Sub-Advisor             
          Princeton, NJ 08540   
BlackRock Financial   The Bank of    PNC Global Investment      Address of the Funds 
Management, Inc   New York Mellon3  Servicing (U.S.) Inc.3      100 Bellevue Parkway 
New York, NY 10022  New York, NY 10286  Wilmington, DE 19809      Wilmington, DE 19809 
2 For BHL, DVF, FRA, and BLW.           
3 For Senior Floating Rate and Senior Floating Rate II.         

Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Funds and Master LLC retired. The
Funds’ and Master LLC’s Board of Directors wish Mr. Burke well in his retirement.

Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Funds and Master LLC, and
Brendan Kyne became Vice President of the Funds and Master LLC.

88 ANNUAL REPORT AUGUST 31, 2009

Additional Information             
     Proxy Results             
The Annual Meeting of Shareholders was held on August 26, 2009 for shareholders of record on June 29, 2009, to elect director nominees of each Fund: 
Approved the Directors as follows:             
     G. Nicholas Beckwith, III  Richard E. Cavanagh  Richard S. Davis 
     Votes     Votes     Votes 
  Votes For  Withheld   Votes For  Withheld  Votes For  Withheld 
DVF  9,155,029   373,970     9,156,729     372,270  9,156,729     372,270 
FRA  14,645,169   164,452   14,648,802     160,819  14,632,612     177,009 
  Kent Dixon             Frank J. Fabozzi  Kathleen F. Feldstein 
     Votes     Votes     Votes 
  Votes For  Withheld   Votes For  Withheld  Votes For  Withheld 
DVF  9,143,906   385,093   9,155,129   373,870  9,214,394     314,605 
FRA  14,621,624   187,997  14,662,972   146,649  14,627,697     181,924 
  James T. Flynn  Henry Gabbay  Jerrold B. Harris 
     Votes     Votes     Votes 
  Votes For  Withheld   Votes For  Withheld  Votes For  Withheld 
DVF  9,144,616   384,383   9,157,685   371,314  9,153,500     375,499 
FRA  14,647,862   161,759  14,632,690   176,931  14,643,243     166,378 
  R. Glenn Hubbard  W. Carl Kester  Karen P. Robards 
     Votes     Votes     Votes 
  Votes For  Withheld   Votes For  Withheld  Votes For  Withheld 
DVF  9,132,619   396,380     9,144,844     384,155  9,215,478     313,521 
FRA  14,658,263   151,358   14,647,982     161,639  14,620,093     189,528 
Approved the Class II Directors/Trustees as follows:             
  Richard S. Davis             Frank J. Fabozzi  James T. Flynn 
     Votes     Votes     Votes 
  Votes For  Withheld   Votes For  Withheld  Votes For  Withheld 
BHL  8,275,596   252,027     8,275,596     252,027  8,174,587     353,036 
BLW  32,281,241   701,401   32,281,241     701,401  32,257,346     725,296 
Karen P. Robards
     Votes         
  Votes For  Withheld         
BHL  8,262,061   265,562         
BLW  32,228,618   754,024         

Fund Certification

Certain Funds are listed for trading on the New York Stock Exchange
(“NYSE”) and have filed with the NYSE their annual chief executive officer
certification regarding compliance with the NYSE’s listing standards. The

Funds filed with the SEC the certification of its chief executive officer and
chief financial officer required by section 302 of the Sarbanes-Oxley Act.

Dividend Policy

Each Fund’s dividend policy is to distribute all or a portion of its net invest-
ment income to its shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Funds
may at times pay out less than the entire amount of net investment income
earned in any particular month and may at times in any particular month
pay out such accumulated but undistributed income in addition to net

investment income earned in that month. As a result, the dividends paid
by the Funds for any particular month may be more or less than the
amount of net investment income earned by the Funds during such month.
The Funds’ current accumulated but undistributed net investment income,
if any, is disclosed in the Statements of Assets and Liabilities, which com-
prises part of the financial information included in this report.

ANNUAL REPORT AUGUST 31, 2009 89

Additional Information (continued)

General Information

The Funds do not make available copies of their Statements of Additional
Information because the Funds’ shares are not continuously offered, which
means that the Statement of Additional Information of each Fund has not
been updated after completion of the respective Fund’s offerings and the
information contained in each Fund’s Statement of Additional Information
may have become outdated.

During the period, there were no material changes in the Funds’ investment
objectives or policies or to the Funds’ charters or by-laws that were not
approved by their shareholders or in the principal risk factors associated
with investment in the Funds. Changes regarding the persons who are pri-
marily responsible for the day-to-day management for the Funds’ portfolios
are noted in the boxed text below.

Quarterly performance, semi-annual and annual reports and other informa-
tion regarding the Funds may be found on BlackRock’s website, which can
be accessed at http://www.blackrock.com. This reference to BlackRock’s
website is intended to allow investors public access to information regard-
ing the Funds and does not, and is not intended to, incorporate BlackRock’s
website into this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ web-
sites or shareholders can sign up for e-mail notifications of quarterly state-
ments, annual and semi-annual reports by enrolling in the Funds’ electronic
delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks
or Brokerages:

Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders
with multiple accounts at the same address. This practice is commonly
called “householding” and it is intended to reduce expenses and eliminate
duplicate mailings of shareholder documents. Mailings of your shareholder
documents may be householded indefinitely unless you instruct us other-
wise. If you do not want the mailing of these documents to be combined
with those for other members of your household, please contact the Funds
at (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Fund files its complete schedule of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q. The Funds’
Forms N-Q are available on the SEC’s website at http://www.sec.gov and
may also be reviewed and copied at the SEC’s Public Reference Room
in Washington, DC. Information on the operation of the Public Reference
Room may be obtained by calling (202) 551-8090. Each Fund’s Forms
N-Q may also be obtained upon request and without charge by calling
(800) 441-7762

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
(1) without charge, upon request, by calling toll-free (800) 441-7762;
(2) at www.blackrock.com; and (3) on the Securities and Exchange
Commission’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities
held in the Funds’ portfolios during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the
Securities and Exchange Commission’s website at http://www.sec.gov.

BHL, DVF, FRA, BLW, Senior Floating Rate and Senior Floating Rate II are managed by a team of financial professionals.
The portfolio managers are primarily responsible for the day-to-day management of the Funds’ portfolios. Effective May 8,
2009, Leland T. Hart, James E. Keenan and C. Adrian Marshall are the portfolio managers for BHL, BLW and DVF. Leland T.
Hart and C. Adrian Marshall are the portfolio managers for FRA, Senior Floating Rate and Senior Floating Rate II.

Mr. Hart is Managing Director of BlackRock, Inc. since 2009; Partner of R3 Capital Partners in 2009 and Managing
Director thereof from 2008 to 2009; Managing Director of Lehman Brothers from 2006 to 2008 and Executive Director
thereof from 2003 to 2006.

Mr. Keenan is Managing Director of BlackRock, Inc. since 2008 and Director thereof from 2004 to 2008; Head of the
Leveraged Finance Portfolio team; and senior high yield trader at Columbia Management Group from 2003 to 2004.

Mr. Marshall is Director of BlackRock, Inc. since 2007 and Vice President thereof from 2004 to 2007.

90 ANNUAL REPORT AUGUST 31, 2009

Additional Information (concluded)

Section 19 Notices

The amounts and sources of distributions reported are only estimates and
are not being provided for tax reporting purposes. The actual amounts and
sources for tax reporting purposes will depend upon each Fund’s invest-
ment experience during the year and may be subject to changes based on

the tax regulations. Each Fund will send you a Form 1099-DIV each calen-
dar year that will tell you how to report these distributions for federal
income tax purposes.

    Total Cumulative Distributions    % Breakdown of the Total Cumulative 
    for the Fiscal Year-to-Date    Distributions for the Fiscal Year-to-Date 
  Net  Net Realized    Total Per  Net  Net Realized    Total Per 
  Investment  Capital  Return of  Common  Investment  Capital  Return of  Common 
  Income  Gains  Capital  Share  Income  Gains  Capital  Share 
BHL  $0.795949  —  $0.306551  $1.102500  72%  0%  28%  100% 
DVF  $1.080595  —  $0.296905  $1.377500  78%  0%  22%  100% 
FRA  $1.209873  —  $0.091341  $1.301214  93%  0%  7%  100% 
BLW  $0.958695  —  $0.201334  $1.160029  83%  0%  17%  100% 
Senior Floating Rate  $0.376591  —  $0.007176  $0.383768  98%  0%  2%  100% 
Senior Floating Rate II.  $0.399235  —  $0.006780  $0.406016  98%  0%  2%  100% 

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and for-
mer fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following informa-
tion is provided to help you understand what personal information
BlackRock collects, how we protect that information and why in certain
cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and
about you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on applica-
tions, forms or other documents; (ii) information about your transactions
with us, our affiliates, or others; (iii) information we receive from a consumer
reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.

We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services
that may be of interest to you. In addition, BlackRock restricts access
to non-public personal information about its Clients to those BlackRock
employees with a legitimate business need for the information. BlackRock
maintains physical, electronic and procedural safeguards that are designed
to protect the non-public personal information of its Clients, including pro-
cedures relating to the proper storage and disposal of such information.

ANNUAL REPORT AUGUST 31, 2009 91


This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a represen-
tation of future performance. BlackRock Defined Opportunity Credit Trust, BlackRock Diversified Income Strategies Fund, Inc., BlackRock Floating Rate
Income Strategies Fund, Inc., BlackRock Limited Duration Income Trust, BlackRock Senior Floating Rate Fund, Inc. and BlackRock Senior Floating Rate
Fund II, Inc. leverage their Common Shares, which creates risk for Common Shareholders, including the likelihood of greater volatility of net asset value and
market price of Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other
information herein are as dated and are subject to change.


Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end
of the period covered by this report, applicable to the registrant’s principal executive officer,
principal financial officer and principal accounting officer, or persons performing similar
functions. During the period covered by this report, there have been no amendments to or
waivers granted under the code of ethics. A copy of the code of ethics is available without
charge at www.blackrock.com.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors or trustees, as
applicable (the “board of directors”) has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Kent Dixon
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Robert S. Salomon, Jr. (retired effective December 31, 2008)

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards
qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

Prof. Kester has a thorough understanding of generally accepted accounting principles,
financial statements and internal control over financial reporting as well as audit committee
functions. Prof. Kester has been involved in providing valuation and other financial
consulting services to corporate clients since 1978. Prof. Kester’s financial consulting
services present a breadth and level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can reasonably be expected to be
raised by the registrant’s financial statements.

Ms. Robards has a thorough understanding of generally accepted accounting principles,
financial statements and internal control over financial reporting as well as audit committee
functions. Ms. Robards has been President of Robards & Company, a financial advisory
firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years
where she was responsible for evaluating and assessing the performance of companies based
on their financial results. Ms. Robards has over 30 years of experience analyzing financial
statements. She also is a member of the audit committee of one publicly held company and
a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial
expert will not be deemed an “expert” for any purpose, including without limitation for the
purposes of Section 11 of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation or identification as an
audit committee financial expert does not impose on such person any duties, obligations, or
liabilities greater than the duties, obligations, and liabilities imposed on such person as a
member of the audit committee and board of directors in the absence of such designation or
identification.

Item 4 – Principal Accountant Fees and Services           
           (a) Audit Fees   (b) Audit-Related Fees1             (c) Tax Fees2       (d) All Other Fees3 
  Current  Previous  Current  Previous  Current  Previous  Current  Previous 
  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year 
Entity Name  End  End  End  End  End  End  End  End 
BlackRock Floating                 
Rate Income  $49,300  $46,300  $0  $8,000  $6,100  $6,100  $1,028  $1,049 
Strategies Fund, Inc.                 

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of
financial statements not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (the “Committee”) has adopted policies and
procedures with regard to the pre-approval of services. Audit, audit-related and tax
compliance services provided to the registrant on an annual basis require specific pre-
approval by the Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the registrant’s affiliated
service providers that relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee believes are a) consistent
with the SEC’s auditor independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis (“general pre-approval”).
The term of any general pre-approval is 12 months from the date of the pre-approval, unless
the Committee provides for a different period. Tax or other non-audit services provided to
the registrant which have a direct impact on the operation or financial reporting of the
registrant will only be deemed pre-approved provided that any individual project does not
exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the
Committee oversees. For this purpose, multiple projects will be aggregated to determine if
they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee
for ratification. The Committee may delegate to one or more of its members the authority to
approve the provision of and fees for any specific engagement of permitted non-audit
services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by
the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates’ Aggregate Non-Audit Fees:

  Current Fiscal Year  Previous Fiscal Year 
               Entity Name  End  End 
BlackRock Floating Rate  $414,628  $420,149 
Income Strategies Fund, Inc.     

(h) The registrant’s audit committee has considered and determined that the provision of
non-audit services that were rendered to the registrant’s investment adviser (not including
any non-affiliated sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant’s investment adviser), and any entity
controlling, controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.

Regulation S-X Rule 2-01(c)(7)(ii) – $407,500, 0%

Item 5 – Audit Committee of Listed Registrants – The following individuals are members of the
registrant’s separately-designated standing audit committee established in accordance with
Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Kent Dixon
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Robert S. Salomon, Jr. (retired effective December 31, 2008)

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since
the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – The board of directors has delegated the voting of proxies for the
Fund securities to the Fund’s investment adviser (“Investment Adviser”) pursuant to the
Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment
Adviser will vote proxies related to Fund securities in the best interests of the Fund and its
stockholders. From time to time, a vote may present a conflict between the interests of the
Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated
person of the Fund or the Investment Adviser, on the other. In such event, provided that the
Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee
thereof (the “Oversight Committee”) is aware of the real or potential conflict or material
non-routine matter and if the Oversight Committee does not reasonably believe it is able to
follow its general voting guidelines (or if the particular proxy matter is not addressed in the
guidelines) and vote impartially, the Oversight Committee may retain an independent
fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the
Investment Adviser’s clients. If the Investment Adviser determines not to retain an
independent fiduciary, or does not desire to follow the advice of such independent fiduciary,
the Oversight Committee shall determine how to vote the proxy after consulting with the
Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal
and Compliance Department and concluding that the vote cast is in its client’s best interest
notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are
attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is available

without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at
http://www.sec.gov.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – as of August 31,
2009.

(a)(1) The registrant (or “Fund”) is managed by a team of investment professionals
comprised of Leland Hart, Managing Director at BlackRock and C. Adrian Marshall,
Director at BlackRock. Messrs. Hart and Marshall are the Fund’s co-portfolio managers and
are responsible for the day-to-day management of the Fund’s portfolio and the selection of
its investments. Messrs. Hart and Marshall have been members of the Fund’s management
team since 2009.

                               Portfolio Manager     Biography         
                               Leland Hart       Managing Director of BlackRock, Inc. since 2009; Partner of R3 Capital   
       Partners ("R3") in 2009; Managing Director of R3 in 2008 - 2009; Managing 
       Director of Lehman Brothers from 2006 - 2008; Executive Director of Lehman 
       Brothers from 2003 - 2006.       
                               C. Adrian Marshall     Director of BlackRock, Inc. since 2007; Vice President of BlackRock, Inc.   
       from 2004 - 2007.         
                             (a)(2) As of August 31, 2009:           
    (ii) Number of Other Accounts Managed  (iii) Number of Other Accounts and 
    and Assets by Account Type  Assets for Which Advisory Fee is 
            Performance-Based   
    Other  Other Pooled    Other  Other Pooled   
(i) Name of  Registered  Investment  Other  Registered  Investment  Other 
Portfolio Manager  Investment  Vehicles  Accounts  Investment  Vehicles  Accounts 
  Companies      Companies     
Leland Hart       8  1  0  0  0  0 
  $2.21 Billion  $36.6 Million  $0  $0  $0  $0 
C. Adrian Marshall       8  15  6  0  10  0 
  $2.21 Billion  $4.23 Billion  $1.06 Billion  $0  $3.48 Billion  $0 
                               (iv) Potential Material Conflicts of Interest         

BlackRock and its affiliates (collectively, herein “BlackRock”) has built a professional
working environment, firm-wide compliance culture and compliance procedures and
systems designed to protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address the allocation of
investment opportunities, execution of portfolio transactions, personal trading by employees
and other potential conflicts of interest that are designed to ensure that all client accounts are
treated equitably over time. Nevertheless, BlackRock furnishes investment management and
advisory services to numerous clients in addition to the Fund, and BlackRock may,
consistent with applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have performance or higher fees
paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of
such fees), which may be the same as or different from those made to the Fund. In addition,
BlackRock, its affiliates and significant shareholders and any officer, director, stockholder
or employee may or may not have an interest in the securities whose purchase and sale
BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant

shareholders, or any officer, director, stockholder, employee or any member of their
families may take different actions than those recommended to the Fund by BlackRock with
respect to the same securities. Moreover, BlackRock may refrain from rendering any advice
or services concerning securities of companies of which any of BlackRock’s (or its
affiliates’ or significant shareholders’) officers, directors or employees are directors or
officers, or companies as to which BlackRock or any of its affiliates or significant
shareholders or the officers, directors and employees of any of them has any substantial
economic interest or possesses material non-public information. Each portfolio manager
also may manage accounts whose investment strategies may at times be opposed to the
strategy utilized for a fund. In this connection, it should be noted that Mr. Marshall
currently manages certain accounts that are subject to performance fees. In addition, a
portfolio manager may assist in managing certain hedge funds and may be entitled to
receive a portion of any incentive fees earned on such funds and a portion of such incentive
fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the
future manage other such accounts or funds and may be entitled to receive incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client
fairly. When BlackRock purchases or sells securities for more than one account, the trades
must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to
allocate investments in a fair and equitable manner among client accounts, with no account
receiving preferential treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve reasonable efficiency in client
transactions and provide BlackRock with sufficient flexibility to allocate investments in a
manner that is consistent with the particular investment discipline and client base.

(a)(3) As of August 31, 2009:

Portfolio Manager Compensation Overview

BlackRock’s financial arrangements with its portfolio managers, its competitive
compensation and its career path emphasis at all levels reflect the value senior management
places on key resources. Compensation may include a variety of components and may vary
from year to year based on a number of factors. The principal components of compensation
include a base salary, a performance-based discretionary bonus, participation in various
benefits programs and one or more of the incentive compensation programs established by
BlackRock such as its Long-Term Retention and Incentive Plan and Restricted Stock
Program.

Base compensation. Generally, portfolio managers receive base compensation based on
their seniority and/or their position with the firm. Senior portfolio managers who perform
additional management functions within the portfolio management group or within
BlackRock may receive additional compensation for serving in these other capacities.

Discretionary Incentive Compensation
Discretionary incentive compensation is a function of several components: the performance
of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock,
the investment performance, including risk-adjusted returns, of the firm’s assets under
management or supervision by that portfolio manager relative to predetermined
benchmarks, and the individual’s seniority, role within the portfolio management team,
teamwork and contribution to the overall performance of these portfolios and BlackRock.

In most cases, including for the portfolio managers of the Fund, these benchmarks are the
same as the benchmark or benchmarks against which the performance of the Fund or other
accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment
Officers determine the benchmarks against which the performance of funds and other
accounts managed by each portfolio manager is compared and the period of time over which
performance is evaluated. With respect to the portfolio managers, such benchmarks for the
Fund include a combination of market-based indices (e.g., CSFB Leveraged Loan Index),
certain customized indices and certain fund industry peer groups.

BlackRock’s Chief Investment Officers make a subjective determination with respect to the
portfolio managers’ compensation based on the performance of the funds and other accounts
managed by each portfolio manager relative to the various benchmarks noted above.
Performance is measured on both a pre-tax and after-tax basis over various time periods
including 1, 3, 5 and 10-year periods, as applicable.

Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation is distributed to portfolio managers in a combination
of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of
years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in
BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base
salary, represents more than 60% of total compensation for the portfolio managers. Paying
a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a
given year “at risk” based on BlackRock’s ability to sustain and improve its performance
over future periods.

Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term
incentive plan that seeks to reward certain key employees. Prior to 2006, the plan provided
for the grant of awards that were expressed as an amount of cash that, if properly vested and
subject to the attainment of certain performance goals, will be settled in cash and/or in
BlackRock, Inc. common stock. Beginning in 2006, awards are granted under the LTIP in
the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the
attainment of certain performance goals, will be settled in BlackRock, Inc. common stock.
Mr. Marshall has received awards under the LTIP.

Deferred Compensation Program — A portion of the compensation paid to
eligible BlackRock employees may be voluntarily deferred into an account that tracks the
performance of certain of the firm’s investment products. Each participant in the deferred
compensation program is permitted to allocate his deferred amounts among the various
investment options. Mr. Marshall has participated in the deferred compensation program.

Other compensation benefits. In addition to base compensation and discretionary
incentive compensation, portfolio managers may be eligible to receive or participate in one
or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive
savings plans in which BlackRock employees are eligible to participate, including a
401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee
Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a
company match equal to 50% of the first 6% of eligible pay contributed to the plan capped
at $4,000 per year, and a company retirement contribution equal to 3-5% of eligible
compensation. The RSP offers a range of investment options, including registered

investment companies managed by the firm. BlackRock contributions follow the investment
direction set by participants for their own contributions or, absent employee investment
direction, are invested into a balanced portfolio. The ESPP allows for investment in
BlackRock common stock at a 5% discount on the fair market value of the stock on the
purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares
or a dollar value of $25,000. Each portfolio manager is eligible to participate in these plans.

(a)(4)  Beneficial Ownership of Securities.   
                   Portfolio Manager  Dollar Range of Equity Securities 
    Beneficially Owned 
                   Leland Hart  None 
                   C. Adrian Marshall  $1 - $10,000 

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable due to no such purchases during the period covered
by this report.

Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that include biographical information and set forth the
qualifications of the proposed nominee to the registrant’s Secretary. There have been no
material changes to these procedures.

Item 11 – Controls and Procedures

11(a) – The registrant’s principal executive and principal financial officers or persons performing
similar functions have concluded that the registrant’s disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the
“1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the
evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act
and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

11(b) – There were no changes in the registrant’s internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected, or are reasonably likely to
materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

12(a)(1) – Code of Ethics – See Item 2

12(a)(2) – Certifications – Attached hereto

12(a)(3) – Not Applicable

12(b) – Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

BlackRock Floating Rate Income Strategies Fund, Inc.

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock Floating Rate Income Strategies Fund, Inc.

Date: October 22, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock Floating Rate Income Strategies Fund, Inc.

Date: October 22, 2009

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Floating Rate Income Strategies Fund, Inc.

Date: October 22, 2009