UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act File number 811-21506
Name of Fund: BlackRock Enhanced Capital and Income Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Enhanced Capital and Income Fund, Inc., 800 Scudders
Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011,
Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 12/31/2007
Date of reporting period: 01/01/07 - 03/31/07
Item 1 - Schedule of Investments
BlackRock Capital and Income Strategies Fund, Inc.
Schedule of Investments as of March 31, 2007 (in U.S. dollars)
Preferred Securities
Face
Industry Amount Capital Trusts Value
Commercial Banks - 2.7% $ 1,000,000 Dresdner Funding Trust I, 8.151% due 6/30/2031 (g) $ 1,190,118
2,000,000 Mizuho JGB Investment LLC, 9.87% (c)(g)(j) 2,104,988
2,000,000 SB Treasury Co. LLC, 9.40% (c)(g)(j) 2,092,912
2,000,000 Westpac Capital Trust III, 5.819% (c)(g)(j) 2,012,740
Total Capital Trusts (Cost - $7,688,667) - 2.7% 7,400,758
Shares
Held Preferred Stocks
Capital Markets - 2.8% 25,000 The Bear Stearns Cos., Inc. Series E, 6.15% 1,300,000
10,000 Deutsche Bank Capital Funding Trust VIII, 6.375% 260,000
80,000 Goldman Sachs Group, Inc. Series A, 3.91% 2,076,000
40,000 Lehman Brothers Holdings, Inc., 6.50% 1,048,800
40,000 Lehman Brothers Holdings, Inc. Series G, 3% 1,022,500
80,000 Morgan Stanley Group, Inc. Series A, 6.186% 2,092,000
--------------
7,799,300
Commercial Banks - 5.7% 27,734 First Republic Bank, 6.25% 698,550
1,674 First Tennessee Bank NA, 3.90% (c)(g) 1,711,142
80,000 HSBC USA, Inc. Series F, 3.50% 2,070,000
20,000 HSBC USA, Inc. Series H, 6.50% 529,000
60,000 Royal Bank of Scotland Group Plc Series N, 6.35% 1,533,600
2,000 SG Preferred Capital II, 6.302% 2,102,500
50,000 Santander Finance Preferred SA Unipersonal, 6.50% 1,270,315
60,000 Santander Finance Preferred SA Unipersonal, 6.80% 1,515,000
40,000 Sovereign Bancorp, Inc. Series C, 7.30% (b) 1,094,000
90,000 SunTrust Banks, Inc., 5.92% 2,358,000
40,000 US Bancorp Series B, 5.56% 1,044,000
--------------
15,926,107
Consumer Finance - 0.1% 5,000 SLM Corp. Series A, 6.97% 268,750
Diversified Financial Services - 0.8% 9,200 Bank of America Corp. Series D, 6.20% 241,500
29,400 Bank of America Corp. Series E, 5.718% 755,580
50,000 CIT Group, Inc. Series A, 6.35% 1,315,000
--------------
2,312,080
Electric Utilities - 3.3% 11,109 Connecticut Light & Power, 5.28% 510,320
6,800 Entergy Arkansas, Inc., 6.45% 172,338
12,000 Entergy Louisiana LLC, 6.95% 1,188,965
125,000 Interstate Power & Light Co. Series B, 8.375% 3,781,250
20,000 PPL Electric Utilities Corp., 6.25% 523,750
10,000 Peco Energy Co. Series D, 4.68% 875,800
20,000 Southern California Edison Co., 5.349% 1,985,000
--------------
9,037,423
Food Products - 1.5% 2,000 General Mills, Inc., 4.50% 2,006,000
20 H.J. Heinz Finance Co., 6.226% (g) 2,060,000
--------------
4,066,000
Gas Utilities - 0.3% 35,000 Southern Union Co., 7.55% 910,000
Insurance - 5.2% 40,000 ACE Ltd. Series C, 7.80% 1,027,600
80,000 Aegon NV, 6.375% 2,064,800
40,000 Arch Capital Group Ltd., 8% 1,066,252
10,000 Aspen Insurance Holdings Ltd., 7.401% 255,000
8,000 Axis Capital Holdings Ltd. Series A, 7.25% 207,040
48,000 Endurance Specialty Holdings Ltd. Series A, 7.75% 1,278,240
30,000 Genworth Financial, Inc. Series A, 5.25% 1,492,500
25,000 Metlife, Inc. Series B, 6.50% 655,500
72,000 Principal Financial Group Series B, 6.518% 1,998,000
80,000 Prudential Plc, 6.75% 2,060,000
2,200 Zurich RegCaPS Funding Trust, 6.58% (c)(g) 2,222,000
--------------
14,326,932
Multi-Utilities - 0.8% 80,000 Pacific Gas & Electric Co. Series A, 6% 2,080,000
Oil, Gas & Consumable Fuels - 0.7% 19,500 Apache Corp. Series B, 5.68% (b) 1,964,625
Thrifts & Mortgage Finance - 6.6% 25,000 Fannie Mae Series I, 5.375% 1,212,250
59,350 Fannie Mae Series L, 5.125% 2,887,378
45,000 Fannie Mae Series O, 7% (c) 2,362,500
150,000 Freddie Mac Series M, 3.93% 6,975,000
25,000 Freddie Mac Series Q, 3.85% 1,125,250
40,000 Freddie Mac Series S, 5.87% 2,090,000
30,000 Freddie Mac Series V, 5.57% 750,939
40,000 Washington Mutual Capital Trust 2001 Series K, 6.09% 1,040,000
--------------
18,443,317
Total Preferred Stocks (Cost - $74,999,539) - 27.8% 77,134,534
Real Estate Investment Trusts
Real Estate Investment Trusts 25,000 Public Storage, Inc. Series L, 6.75% 634,375
(REITs) - 0.2%
Total Real Estate Investment Trusts
(Cost - $625,000) - 0.2% 634,375
Face
Amount Trust Preferreds
Gas Utilities - 0.4% $ 1,000,000 Southwest Gas Capital II, 7.70% due 9/15/2043 1,019,772
Insurance - 0.7% 2,000,000 ABN AMRO North America Capital Funding Trust I,
6.968% due 9/15/2010 (c)(g) 2,061,933
Thrifts & Mortgage Finance - 0.2% 625,000 Countrywide Capital V, 7% due 11/01/2066 604,627
Total Trust Preferreds (Cost - $3,737,327) - 1.3% 3,686,332
Total Preferred Securities (Cost - $87,050,533) - 32.0% 88,855,999
Corporate Bonds
Commercial Banks - 2.3% 200,000 ATF Capital B.V., 9.25% due 2/21/2014 (g) 195,250
700,000 Export-Import Bank of Korea, 4.25% due 11/27/2007 694,582
750,000 ICICI Bank Ltd., 4.75% due 10/22/2008 740,309
750,000 Kazkommerts International B.V., 10.125% due 5/08/2007 752,475
200,000 Kazkommerts International B.V., 8.50% due 4/16/2013 210,976
100,000 Kazkommerts International B.V., 8% due 11/03/2015 101,630
2,000,000 Lloyds TSB Bank Plc, 6.90% (j) 2,002,500
220,000 RSHB Capital SA for OJSC Russian Agricultural Bank,
7.175% due 5/16/2013 231,262
225,000 SunTrust Preferred Capital I, 5.853% (c)(j) 228,148
190,000 TuranAlem Finance B.V., 8.25% due 1/22/2037 (g) 190,950
1,200,000 VTB Capital SA for Vneshtorgbank, 5.96%
due 8/01/2008 (c)(g) 1,200,600
--------------
6,548,682
Diversified Financial Services - 0.3% 900,000 AC International Finance Ltd., 8.125% due 2/21/2008 917,175
Diversified Telecommunication 750,000 Empresa Brasileira de Telecom SA Series B, 11%
Services - 0.7% due 12/15/2008 819,375
1,000,000 Excelcomindo Finance Co. B.V., 8% due 1/27/2009 1,022,500
--------------
1,841,875
Electric Utilities - 0.2% 500,000 Tenaga Nasional Bhd, 7.20% due 4/29/2007 500,504
Independent Power Producers & 150,000 Aes Dominicana Energia Finance SA, 11%
Energy Traders - 0.1% due 12/13/2015 (g) 154,500
Industrial Conglomerates - 0.1% 250,000 SM Investments Corp., 8% due 10/16/2007 253,056
Insurance - 0.5% 350,000 AXA SA, 6.379% (c)(g)(j) 335,948
395,000 Financial Security Assurance Holdings Ltd., 6.40%
due 12/15/2066 (c)(g) 386,179
600,000 Metlife, Inc., 6.40% due 12/15/2066 585,836
--------------
1,307,963
Metals & Mining - 0.1% 300,000 Vale Overseas Ltd., 6.875% due 11/21/2036 309,806
Oil, Gas & Consumable Fuels - 2.3% 215,000 Gaz Capital For Gazprom, 6.51% due 3/07/2022 (g) 218,225
550,000 Morgan Stanley Bank AG for OAO Gazprom,
9.625% due 3/01/2013 650,430
900,000 Pemex Project Funding Master Trust, 8.85% due 9/15/2007 912,150
300,000 Pemex Project Funding Master Trust, 6.125%
due 8/15/2008 302,100
500,000 Petrobras Energia SA, 9% due 5/01/2009 527,750
175,000 Petroliam Nasional Bhd, 7.75% due 8/15/2015 203,638
1,920,000 Salomon Brothers AG for OAO Gazprom,
9.125% due 4/25/2007 1,923,648
1,750,000 YPF SA Series A, 7.75% due 8/27/2007 1,760,938
--------------
6,498,879
Paper & Forest Products - 0.1% 250,000 SINO-FOREST Corp., 9.125% due 8/17/2011 (g) 270,625
Wireless Telecommunication 625,000 Mobile Telesystems Finance SA, 9.75% due 1/30/2008 643,938
Services - 0.7% 1,000,000 UBS Luxembourg SA for OJSC Vimpel Communications,
10% due 6/16/2009 1,075,800
163,000 UBS Luxembourg SA for OJSC Vimpel Communications,
8.25% due 5/23/2016 173,595
--------------
1,893,333
Total Corporate Bonds (Cost - $20,517,019) - 7.4% 20,496,398
Foreign Government Obligations
Foreign Government 3,078,750 Argentina Bonos, 5.475% due 8/03/2012 (c) 2,922,529
Obligations - 15.4% 402,444 Argentina Bonos, 3.821% due 2/04/2018 (c) 215,585
600,000 Argentina Government International Bond, .62%
due 12/15/2035 (f) 82,800
2,290,000 Brazilian Government International Bond, 11.50%
due 3/12/2008 2,427,400
1,300,000 Brazilian Government International Bond, 9.25%
due 10/22/2010 1,461,200
1,000,000 Brazilian Government International Bond, 10.25%
due 6/17/2013 1,246,500
1,450,000 Brazilian Government International Bond, 10.50%
due 7/14/2014 1,863,250
450,000 Brazilian Government International Bond, 8%
due 1/15/2018 508,275
55,000 Brazilian Government International Bond, 8.25%
due 1/20/2034 69,025
110,000 Chile Government International Bond, 5.50%
due 1/15/2013 111,804
1,420,000 Colombia Government International Bond,
8.625% due 4/01/2008 1,462,600
2,000,000 Colombia Government International Bond,
10.50% due 7/09/2010 2,287,000
385,000 Colombia Government International Bond,
7.375% due 9/18/2037 419,073
250,000 Credit Suisse First Boston International for City of Kiev
Ukraine, 8% due 11/06/2015 266,033
142,087 Dominican Republic International Bond, 9.04%
due 1/23/2018 163,826
230,000 Ecuador Government International Bond, 10%
due 8/15/2030 204,700
350,000 Federative Republic of Brazil, 12.50% due 1/05/2022 198,248
400,000 Indonesia Government International Bond,
6.75% due 3/10/2014 417,007
325,000 Indonesia Government International Bond,
7.50% due 1/15/2016 (g) 357,906
150,000 Indonesia Government International Bond,
6.625% due 2/17/2037 (g) 147,750
1,219,001 Mexico Government International Bond Series A,
6.75% due 9/27/2034 1,329,320
450,000 Panama Government International Bond, 8.25%
due 4/22/2008 461,250
135,000 Panama Government International Bond, 8.875%
due 9/30/2027 171,990
1,590,000 Peru Government International Bond, 9.125%
due 1/15/2008 1,629,750
135,000 Peru Government International Bond, 9.875%
due 2/06/2015 171,653
1,499,040 Peru Government International Bond, 8.375%
due 5/03/2016 1,780,110
175,000 Peru Government International Bond, 8.75%
due 11/21/2033 230,125
396,271 Peru Government International Bond, 6.55%
due 3/14/2037 411,329
1,700,000 Philippine Government International Bond,
7.50% due 9/11/2007 1,711,829
1,300,000 Philippine Government International Bond,
9.875% due 3/16/2010 1,456,000
250,000 Philippine Government International Bond,
8.375% due 2/15/2011 273,125
1,405,000 Philippine Government International Bond, 9%
due 2/15/2013 1,617,506
1,200,000 Republic of Turkey, 12.375% due 6/15/2009 1,369,500
1,295,000 Russia Government International Bond, 10%
due 6/26/2007 1,307,044
375,000 Russia Government International Bond, 11%
due 7/24/2018 541,050
530,000 Russia Government International Bond, 7.50%
due 3/31/2030 601,497
300,000 Turkey Government International Bond, 10%
due 9/19/2007 306,024
1,300,000 Turkey Government International Bond,
9% due 6/30/2011 1,443,000
715,000 Turkey Government International Bond, 11.50%
due 1/23/2012 872,300
340,000 Turkey Government International Bond, 7% due 9/26/2016 345,950
500,000 Turkey Government International Bond, 7.375%
due 2/05/2025 513,750
790,000 Turkey Government International Bond, 6.875%
due 3/17/2036 755,438
50,000 Ukraine Government International Bond, 7.65%
due 6/11/2013 (g) 54,250
125,000 Ukraine Ministry of Finance, 6.58% due 11/21/2016 (g) 126,688
200,000 Uruguay Government International Bond, 9.25%
due 5/17/2017 245,000
274,711 Uruguay Government International Bond,
7.875% due 1/15/2033 (h) 311,110
1,710,000 Venezuela Government International Bond,
9.125% due 6/18/2007 1,725,390
2,160,000 Venezuela Government International Bond,
5.375% due 8/07/2010 2,111,400
1,125,000 Venezuela Government International Bond,
10.75% due 9/19/2013 1,373,625
40,000 Venezuela Government International Bond,
7.65% due 4/21/2025 42,420
395,000 Venezuela Government International Bond,
9.25% due 9/15/2027 496,713
190,444 Venezuela Government International Bond Series DL,
6.25% due 12/18/2007 (a)(c) 190,444
Total Foreign Government Obligations
(Cost - $42,091,038) - 15.4% 42,809,091
Municipal Bonds
Municipal Bonds - 0.6% 1,100,000 Dresdner Bank AG for City of Kiev, 8.75%
due 8/08/2008 1,138,390
450,000 Dresdner Bank AG for Kyivstar GSM, 10.375%
due 8/17/2009 485,829
100,000 Dresdner Bank AG for Kyivstar GSM, 7.75%
due 4/27/2012 104,107
Total Municipal Bonds (Cost - $1,719,538) - 0.6% 1,728,326
Shares
Held Common Stocks
Aerospace & Defense - 5.3% 57,100 Honeywell International, Inc. 2,630,026
30,000 Lockheed Martin Corp. 2,910,600
60,700 Northrop Grumman Corp. 4,505,154
91,800 Raytheon Co. 4,815,828
--------------
14,861,608
Beverages - 0.6% 77,700 Coca-Cola Enterprises, Inc. 1,573,425
Capital Markets - 3.4% 125,000 The Bank of New York Co., Inc. 5,068,750
56,600 Morgan Stanley 4,457,816
--------------
9,526,566
Chemicals - 1.3% 19,000 The Dow Chemical Co. 871,340
57,400 E.I. du Pont de Nemours & Co. 2,837,282
--------------
3,708,622
Commercial Banks - 2.3% 182,600 Wells Fargo & Co. 6,286,918
Communications Equipment - 1.1% 121,800 Alcatel SA (b) 1,439,676
87,800 Motorola, Inc. 1,551,426
--------------
2,991,102
Computers & Peripherals - 4.4% 55,800 Hewlett-Packard Co. 2,239,812
76,600 International Business Machines Corp. 7,220,316
439,200 Sun Microsystems, Inc. (e) 2,639,592
--------------
12,099,720
Consumer Finance - 0.3% 21,600 SLM Corp. 883,440
Diversified Financial Services - 6.5% 82,726 Bank of America Corp. 4,220,732
121,290 Citigroup, Inc. 6,227,029
158,772 JPMorgan Chase & Co. 7,681,389
--------------
18,129,150
Diversified Telecommunication 131,170 AT&T Inc. 5,172,033
Services - 4.0% 199,200 Qwest Communications International Inc. (e) 1,790,808
107,400 Verizon Communications, Inc. 4,072,608
--------------
11,035,449
Electric Utilities - 2.7% 60,800 FPL Group, Inc. 3,719,136
100,900 The Southern Co. 3,697,985
--------------
7,417,121
Energy Equipment & Services - 2.9% 40,300 BJ Services Co. 1,124,370
79,100 GlobalSantaFe Corp. 4,878,888
60,700 Halliburton Co. 1,926,618
--------------
7,929,876
Food Products - 3.3% 77,500 General Mills, Inc. 4,512,050
159,300 Unilever NV (b) 4,654,746
--------------
9,166,796
Health Care Equipment & Supplies - 1.7% 87,800 Baxter International, Inc. 4,624,426
Hotels, Restaurants & Leisure - 1.3% 77,000 McDonald's Corp. 3,468,850
Household Durables - 1.7% 58,000 Koninklijke Philips Electronics NV 2,209,800
46,800 Sony Corp. (b) 2,362,930
--------------
4,572,730
Household Products - 1.4% 58,600 Kimberly-Clark Corp. 4,013,514
IT Services - 1.1% 361,600 Unisys Corp. (e) 3,048,288
Industrial Conglomerates - 3.5% 114,200 General Electric Co. 4,038,110
182,500 Tyco International Ltd. 5,757,875
--------------
9,795,985
Insurance - 5.3% 29,600 The Allstate Corp. 1,777,776
51,200 American International Group, Inc. 3,441,664
31,600 Hartford Financial Services Group, Inc. 3,020,328
79,500 The Travelers Cos., Inc. 4,115,715
33,000 XL Capital Ltd. Class A 2,308,680
--------------
14,664,163
Machinery - 1.0% 26,200 Deere & Co. 2,846,368
Media - 5.3% 142,750 Comcast Corp. Special Class A (e) 3,635,840
18,200 Gannett Co., Inc. 1,024,478
143,600 Interpublic Group of Cos., Inc. (e) 1,767,716
267,600 Time Warner, Inc. 5,277,072
90,400 Walt Disney Co. 3,112,472
--------------
14,817,578
Metals & Mining - 2.1% 37,400 Alcan, Inc. 1,952,280
116,900 Alcoa, Inc. 3,962,910
--------------
5,915,190
Multi-Utilities - 1.5% 47,200 Consolidated Edison, Inc. 2,410,032
20,800 Dominion Resources, Inc. 1,846,416
--------------
4,256,448
Office Electronics - 1.1% 188,400 Xerox Corp. (e) 3,182,076
Oil, Gas & Consumable Fuels - 5.7% 43,600 Chevron Corp. 3,224,656
19,900 Consol Energy, Inc. 778,687
9,800 Devon Energy Corp. 678,356
121,000 Exxon Mobil Corp. 9,129,450
48,200 Peabody Energy Corp. 1,939,568
--------------
15,750,717
Pharmaceuticals - 7.0% 100,700 Bristol-Myers Squibb Co. 2,795,430
68,000 GlaxoSmithKline Plc (b) 3,757,680
42,300 Johnson & Johnson 2,548,998
195,600 Pfizer, Inc. 4,940,856
137,100 Schering-Plough Corp. 3,497,421
36,000 Wyeth 1,801,080
--------------
19,341,465
Semiconductors & Semiconductor 131,300 Fairchild Semiconductor International, Inc. (e) 2,195,336
Equipment - 3.8% 179,000 Intel Corp. 3,424,270
373,800 LSI Logic Corp. (e) 3,902,472
96,700 Micron Technology, Inc. (e) 1,168,136
--------------
10,690,214
Wireless Telecommunication 164,100 Sprint Nextel Corp. 3,111,336
Services - 1.1%
Total Common Stocks (Cost - $192,094,605) - 82.7% 229,709,141
Beneficial
Interest Short-Term Securities
$ 5,115,384 BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.26% (d)(i) 5,115,384
Total Short-Term Securities (Cost - $5,115,384) - 1.8% 5,115,384
Number of
Contracts Options Purchased
Put Options Purchased 110 International Business Machines Corp., expiring May 2007
at USD 90 11,550
Total Options Purchased (Premiums Paid - $8,932) - 0.0% 11,550
Total Investments (Cost - $348,597,049) - 139.9% 388,725,889
Options Written
Call Options Written 280 Baxter International, Inc., expiring May 2007 at USD 50 (95,200)
438 Comcast Corp. Special Class A, expiring July 2007 at
USD 28.333 (22,995)
110 International Business Machines Corp., expiring July 2007
at USD 100 (19,250)
88 Northrop Grumman Corp., expiring May 2007 at USD 70 (44,000)
2,000 Wells Fargo & Co., expiring April 2007 at USD 35 (89,000)
Total Options Written
(Premiums Received - $633,797) - (0.1%) (270,445)
Total Investments, Net of Options Written
(Cost - $347,963,252*) - 139.8% 388,455,444
Liabilities in Excess of Other Assets - (39.8%) (110,579,565)
--------------
Net Assets - 100.0% $ 277,875,879
==============
* The cost and unrealized appreciation (depreciation) of investments,
net of options written, as of March 31, 2007, as computed for federal
income tax purposes, were as follows:
Aggregate cost $ 348,695,963
=====================
Gross unrealized appreciation $ 41,976,174
Gross unrealized depreciation (2,216,693)
---------------------
Net unrealized appreciation $ 39,759,481
=====================
(a) Brady Bonds are securities which have been issued to refinance commercial
bank loans and other debt. The risk associated with these instruments is
the amount of any uncollateralized principal or interest payments since
there is a high default rate of commercial bank loans by countries issuing
these securities.
(b) Depositary receipts.
(c) Floating rate security.
(d) 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 Interest
Affiliate Activity Income
BlackRock Liquidity Series, LLC
Cash Sweep Series $ (6,895,022) $ 131,197
(e) Non-income producing security.
(f) Non-income producing security; issuer filed for bankruptcy or is in default
of interest payments.
(g) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(h) Represents a pay-in-kind security which may pay interest/dividends in
additional face/shares.
(i) Represents the current yield as of March 31, 2007.
(j) The security is a perpetual bond and has no definite maturity date.
o Swaps outstanding as of March 31, 2007 were as follows:
Notional Unrealized
Amount Appreciation
Pay a fixed rate of 5.076% and receive a
floating rate based on 3-month LIBOR
Broker, Lehman Brothers Special Finance
Expires December 2016 $ 1,800,000 $ 13,169
o 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. Industries are shown as a
percent of net assets.
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
2(b) - As of September 29, 2006, with the conclusion of the combination of
Merrill Lynch's asset management business with BlackRock, the
registrant was migrated to BlackRock's trading and compliance
monitoring systems, and various personnel changes occurred. In
conjunction with these business improvements, there were no changes
in the registrant's internal control over financial reporting (as
defined in Rule 30a-3(d) under Act (17 CFR 270.30a-3(d)) that
occurred during the last fiscal quarter that has materially
affected, or is reasonably likely to affect, the registrant's
internal control over financial reporting.
Item 3 - Exhibits
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 Capital and Income Strategies Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock Enhanced Capital and Income Fund, Inc.
Date: May 21, 2007
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/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock Enhanced Capital and Income Fund, Inc.
Date: May 21, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Financial Officer
BlackRock Enhanced Capital and Income Fund, Inc.
Date: May 21, 2007