Investment Company Act file number

811-7362

Western Asset Municipal Partners Fund Inc.

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49th Floor, New York, NY

10018

(Address of principal executive offices)

(Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code:

(888) 777-0102

Date of fiscal year end:

November 30

Date of reporting period:

February 29, 2012

SECURITY

RATE

MATURITY
DATE

FACE
AMOUNT

VALUE

MUNICIPAL BONDS — 150.6%

Alaska — 1.5%

Valdez, AK, Marine Terminal Revenue, BP Pipelines Inc. Project

5.000%

1/1/21

$

2,000,000

$

2,412,920

Arizona — 2.7%

Glendale, AZ, Transportation Excise Tax Revenue, NATL

5.000%

7/1/28

2,855,000

3,098,703

Phoenix, AZ, Civic Improvement Corp., Water System Revenue

5.000%

7/1/29

1,000,000

1,141,140

Total Arizona

4,239,843

California — 21.7%

California Health Facilities Finance Authority Revenue, Catholic Healthcare West

5.625%

7/1/32

5,000,000

5,362,700

California Health Facilities Financing Authority Revenue, Catholic Healthcare West

5.250%

3/1/24

2,500,000

2,834,900

California State, GO, Unrefunded Balance

5.125%

6/1/24

35,000

35,064

California Statewide CDA Revenue, Insured Health Facility L.A., Jewish Home, CA, Mortgage Insurance

5.000%

11/15/28

1,500,000

1,558,125

Los Angeles, CA, Department of Water & Power Revenue, Power Systems, Subordinated, AGM

5.000%

7/1/35

5,000,000

5,312,150

Lower Tule River, CA, Irrigation District Revenue, COP

5.000%

8/1/40

1,000,000

995,440

M-S-R Energy Authority, CA, Gas Revenue

7.000%

11/1/34

2,490,000

3,233,141

M-S-R Energy Authority, CA, Gas Revenue

6.500%

11/1/39

3,000,000

3,685,710

Modesto, CA, Irrigation District Electric Revenue

5.000%

7/1/19

3,000,000

3,545,100

Turlock, CA, Irrigation District Revenue

5.000%

1/1/35

2,500,000

2,645,700

Turlock, CA, Public Financing Authority, Tax Allocation Revenue, AGM

5.000%

9/1/30

2,500,000

2,554,350

University of California Revenues, AMBAC

5.000%

5/15/36

2,620,000

2,705,307

Total California

34,467,687

Colorado — 7.9%

Colorado Health Facilities Authority Revenue:

Poudre Valley Health Care

5.000%

3/1/25

2,850,000

2,980,188

Sisters of Charity Leavenworth Health System Inc.

5.250%

1/1/25

3,500,000

4,005,925

Public Authority for Colorado Energy, Natural Gas Purchase Revenue

5.750%

11/15/18

425,000

475,150

Public Authority for Colorado Energy, Natural Gas Purchase Revenue

6.500%

11/15/38

4,000,000

5,002,840

Total Colorado

12,464,103

Florida — 10.3%

Florida State Board of Education, GO

5.000%

6/1/26

5,500,000

6,544,560

Miami-Dade County, FL, GO, Seaport

5.000%

10/1/23

2,315,000

2,666,486

Orlando & Orange County, FL, Expressway Authority Revenue

5.000%

7/1/30

2,000,000

2,214,880

Orlando, FL, Utilities Commission, Utility System Revenue

5.250%

10/1/22

3,440,000

4,365,326

Seminole Tribe Florida Special Obligation Revenue

5.250%

10/1/27

500,000

485,995

(a)

Total Florida

16,277,247

Illinois — 17.4%

Chicago, IL, Midway Airport Revenue:

NATL

5.500%

1/1/29

2,000,000

2,002,240

NATL

5.625%

1/1/29

3,750,000

3,752,625

(b)

Chicago, IL, Park District, GO, Refunding, FGIC

5.000%

1/1/29

5,000,000

5,422,350

SECURITY

RATE

MATURITY
DATE

FACE
AMOUNT

VALUE

Illinois — continued

Chicago, IL, Public Building Commission, Building Revenue, Chicago School Reform, FGIC

5.250%

12/1/18

$

1,000,000

$

1,189,330

Illinois EFA Revenue, Northwestern University

5.500%

12/1/13

1,070,000

1,111,826

Illinois Health Facilities Authority Revenue:

Refunding, Lutheran General Health System

7.000%

4/1/14

1,420,000

1,496,510

Refunding, SSM Health Care, NATL

6.550%

6/1/13

1,850,000

1,989,250

(c)

Servantoor Project, AGM

6.000%

8/15/12

705,000

723,090

(c)

South Suburban Hospital Project

7.000%

2/15/18

440,000

517,092

(c)

Illinois Municipal Electric Agency Power Supply, FGIC

5.250%

2/1/28

4,145,000

4,541,594

Illinois State, GO, First Series, AGM

5.500%

5/1/16

1,500,000

1,731,645

Metropolitan Pier & Exposition Authority, IL, Dedicated State Tax Revenue, McCormick Place, AGM

5.000%

6/15/50

3,000,000

3,121,440

Total Illinois

27,598,992

Indiana — 1.4%

Indianapolis, IN, Local Public Improvement Bond Bank

5.000%

6/1/27

2,000,000

2,223,280

Maryland — 7.3%

Maryland State EDC, EDR, Transportation Facilities Project

5.750%

6/1/35

1,000,000

1,055,580

Maryland State Health & Higher EFA Revenue:

Carroll County General Hospital Issue

6.000%

7/1/37

3,000,000

3,015,480

Suburban Hospital

5.500%

7/1/16

2,500,000

2,743,000

University of Maryland Medical Systems

6.000%

7/1/32

1,000,000

1,018,770

(d)

Maryland State, GO

5.000%

8/1/21

3,000,000

3,709,620

Total Maryland

11,542,450

Massachusetts — 0.9%

Massachusetts State Water Pollution Abatement Trust Revenue, MWRA Program, Unrefunded Balance

5.750%

8/1/29

355,000

356,076

Massachusetts State Water Resources Authority, NATL

5.000%

8/1/34

1,000,000

1,090,230

Total Massachusetts

1,446,306

Michigan — 6.6%

Detroit, MI, GO, District State Aid

5.250%

11/1/24

3,500,000

3,979,010

Michigan State Hospital Finance Authority Revenue:

McLaren Health Care Corp.

5.750%

5/15/38

2,000,000

2,162,880

Trinity Health Corp.

5.375%

12/1/30

2,745,000

2,785,681

Trinity Health Corp.

5.375%

12/1/30

255,000

264,797

(d)

Wayne County, MI, Airport Authority Revenue, Detroit Metropolitan Airport

5.000%

12/1/18

1,170,000

1,303,450

(b)

Total Michigan

10,495,818

Missouri — 1.4%

Boone County, MO, Hospital Revenue, Boone Hospital Center

5.375%

8/1/38

2,000,000

2,136,500

Nevada — 1.4%

Clark County, NV, GO, AMBAC

5.000%

11/1/21

2,000,000

2,259,700

New York — 28.9%

Brooklyn Arena, NY, Local Development Corp., Barclays Center Project

6.250%

7/15/40

1,000,000

1,076,990

Hudson, NY, Yards Infrastructure Corp. Revenue

5.750%

2/15/47

2,500,000

2,820,175

SECURITY

RATE

MATURITY
DATE

FACE
AMOUNT

VALUE

New York — continued

Liberty, NY, Development Corporation Revenue, Goldman Sachs Headquarters

5.250%

10/1/35

$

1,500,000

$

1,657,725

MTA, NY, Revenue

5.000%

11/15/25

1,000,000

1,148,070

MTA, NY, Revenue

5.250%

11/15/40

1,000,000

1,104,890

Nassau County, NY, Industrial Development Agency Revenue, Continuing Care Retirement, Amsterdam at Harborside

6.700%

1/1/43

500,000

402,630

New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Second General Resolution Fiscal 2011

5.000%

6/15/31

4,850,000

5,510,424

New York City, NY, TFA Revenue, Unrefunded Balance, Future Tax Secured

5.500%

11/15/17

15,000

15,542

New York City, NY\TFA Revenue, Future Tax Secured

5.500%

11/15/17

4,100,000

4,251,577

(d)

New York Liberty Development Corp., Liberty Revenue:

4 World Trade Center LLC Project

5.750%

11/15/51

2,000,000

2,254,840

Second Priority, Bank of America Tower

5.125%

1/15/44

2,500,000

2,655,050

New York State Dormitory Authority Revenue, Court Facilities Lease, NYC Issue, Non State Supported Debt, AMBAC

5.500%

5/15/30

3,365,000

4,243,972

New York State Dormitory Authority Revenue, Non-State Supported Debt, Columbia University

5.000%

7/1/38

2,000,000

2,234,820

New York State Thruway Authority, Second General Highway & Bridge Trust Fund, AMBAC

5.000%

4/1/26

4,700,000

5,223,251

New York State Urban Development Corp. Revenue, State Personal Income Tax

5.000%

3/15/26

5,000,000

5,719,200

Port Authority of New York & New Jersey

5.000%

1/15/41

5,000,000

5,554,900

Total New York

45,874,056

North Carolina — 0.8%

North Carolina Medical Care Commission Health Care Facilities Revenue, Novant Health Obligation Group

5.000%

11/1/39

1,200,000

1,234,524

Ohio — 0.7%

Ohio State Air Quality Development Authority Revenue, FirstEnergy Generation Corp.

5.700%

8/1/20

1,000,000

1,128,670

Oklahoma — 1.4%

Grand River Dam Authority, OK, Revenue

5.250%

6/1/40

2,000,000

2,228,820

Oregon — 0.9%

Multnomah County, OR, Hospital Facilities Authority Revenue, Providence Health Systems

5.250%

10/1/18

1,250,000

1,377,500

Pennsylvania — 6.0%

Central Bradford, PA, Progress Authority Revenue, Guthrie Healthcare Systems

5.000%

12/1/26

5,130,000

5,809,930

Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Revenue, Philadelphia Biosolids Facility

6.250%

1/1/32

500,000

550,200

Philadelphia, PA, Gas Works Revenue, 7th General Ordinance, AMBAC

5.000%

10/1/17

2,685,000

3,071,130

Total Pennsylvania

9,431,260

Puerto Rico — 2.6%

Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue

5.250%

7/1/42

2,000,000

2,003,000

Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue

5.000%

8/1/40

2,000,000

2,161,940

Total Puerto Rico

4,164,940

SECURITY

RATE

MATURITY
DATE

FACE
AMOUNT

VALUE

Tennessee — 3.7%

Tennessee Energy Acquisition Corp., Gas Revenue

5.000%

2/1/20

$

3,555,000

$

3,771,499

Tennessee Energy Acquisition Corp., Gas Revenue

5.000%

2/1/21

2,000,000

2,123,880

Total Tennessee

5,895,379

Texas — 17.7%

Austin, TX, Water & Wastewater System Revenue

5.000%

11/15/26

2,500,000

2,902,650

Austin, TX, Water & Wastewater System Revenue

5.125%

11/15/28

2,210,000

2,566,694

Beaumont, TX, ISD, GO, School Building, PSF

5.000%

2/15/33

1,100,000

1,201,959

Harris County, TX, Health Facilities Development Corp., Hospital Revenue, Memorial Hermann Healthcare Systems

5.250%

12/1/18

2,960,000

3,254,165

Harris County, TX, Metropolitan Transit Authority Sales & Use Tax

5.000%

11/1/36

2,500,000

2,820,200

Kemp, TX, ISD, GO, School Building

5.250%

2/15/33

3,450,000

3,809,180

Mesquite, TX, ISD No. 1, GO, Capital Appreciation, PSFG

0.000%

8/15/27

1,000,000

483,660

North Texas Tollway Authority Revenue

5.750%

1/1/40

2,500,000

2,692,800

Texas State Turnpike Authority Revenue, First Tier, AMBAC

5.500%

8/15/39

5,000,000

5,025,200

Texas State, GO, Water Financial Assistance

5.000%

8/1/27

2,755,000

3,321,345

Total Texas

28,077,853

Washington — 5.2%

Chelan County, WA, Public Utility District, Chelan Hydro System No.1, Construction Revenue, AMBAC

5.450%

7/1/37

2,900,000

2,945,472

(b)(d)

Port of Seattle, WA, Revenue, Refunding, Intermediate Lien, NATL

5.000%

3/1/30

2,000,000

2,152,700

Washington State Health Care Facilities Authority Revenue, PeaceHealth

5.000%

11/1/28

3,000,000

3,208,260

Total Washington

8,306,432

Wisconsin — 2.2%

Wisconsin State HEFA Revenue, SSM Health Care Corp.

5.000%

6/1/25

3,110,000

3,443,578

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $220,079,788)

238,727,858

SHORT-TERM INVESTMENTS — 1.3%

California — 0.9%

California Statewide CDA Revenue, Los Angeles County Museum of Art, LOC-Union Bank N.A.

0.090%

12/1/37

1,505,000

1,505,000

(e)(f)

Virginia — 0.4%

Virginia Commonwealth University, Health System Authority Revenue, LOC-Wells Fargo Bank N.A.

0.130%

7/1/37

600,000

600,000

(e)(f)

TOTAL SHORT-TERM INVESTMENTS (Cost — $2,105,000)

2,105,000

TOTAL INVESTMENTS — 151.9% (Cost — $222,184,788#)

240,832,858

Auction Rate Cumulative Preferred Stock, at Liquidation Value - (53.6%)

(85,000,000

)

Other Assets in Excess of Liabilities - 1.7%

2,759,164

TOTAL NET ASSETS — 100.0%

$

158,592,022

(a)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted.

(b)

Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).

(c)

Bonds are escrowed to maturity by government securities and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.

(d)

Pre-Refunded bonds are escrowed with U.S. government obligations and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.

(e)

Variable rate demand obligations have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no more than 7 days notice.

(f)

Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity.

#

Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:

AGM

- Assured Guaranty Municipal Corporation - Insured Bonds

AMBAC

- American Municipal Bond Assurance Corporation - Insured Bonds

CDA

- Communities Development Authority

COP

- Certificates of Participation

EDC

- Economic Development Corporation

EDR

- Economic Development Revenue

EFA

- Educational Facilities Authority

FGIC

- Financial Guaranty Insurance Company - Insured Bonds

GO

- General Obligation

HEFA

- Health & Educational Facilities Authority

ISD

- Independent School District

LOC

- Letter of Credit

MTA

- Metropolitan Transportation Authority

MWRA

- Massachusetts Water Resources Authority

NATL

- National Public Finance Guarantee Corporation - Insured Bonds

PSF

- Permanent School Fund

PSFG

- Permanent School Fund Guaranty

TFA

- Transitional Finance Authority

Health Care

18.3

%

Local General Obligation

14.9

Transportation

13.8

Power

11.3

Special Tax Obligation

10.7

Water & Sewer

8.7

Industrial Revenue

7.0

Pre-Refunded/Escrowed to Maturity

4.8

Leasing

2.7

Education

2.5

State General Obligation

2.1

Other

2.1

Solid Waste/Resource Recovery

0.2

Short-Term Investments

0.9

100.0

%

AAA/Aaa

17.6

%

AA/Aa

41.9

A

33.2

BBB/Baa

6.0

A-1/VMIG 1

0.9

NR

0.4

100.0

%

AAA

—

An obligation rated “AAA” has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

AA

—

An obligation rated “AA” differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong.

A

—

An obligation rated “A” is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong.

BBB

—

An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

BB

—

An obligation rated “BB” is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions, which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation.

B

—

An obligation rated “B” is more vulnerable to nonpayment than obligations rated “BB”, but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on the obligation.

CCC

—

An obligation rated “CCC” is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

CC

—

An obligation rated “CC” is currently highly vulnerable to nonpayment.

C

—

The “C” rating may be used to cover a situation where a bankruptcy petition has been filed or similar action has been taken, but payments on this obligation are being continued.

D

—

An obligation rated “D” is in payment default. The “D” rating category is used when payments on an obligation are not made on the date due, even if the applicable grace period has not expired, unless Standard & Poor’s believes that such payments will be made during such grace period. The “D” rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments of an obligation are jeopardized.

Aaa

—

Obligations rated “Aaa” are judged to be of the highest quality, with minimal credit risk.

Aa

—

Obligations rated “Aa” are judged to be of high quality and are subject to very low credit risk.

A

—

Obligations rated “A” are considered upper-medium grade and are subject to low credit risk.

Baa

—

Obligations rated “Baa” are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics.

Ba

—

Obligations rated “Ba” are judged to have speculative elements and are subject to substantial credit risk.

B

—

Obligations rated “B” are considered speculative and are subject to high credit risk.

Caa

—

Obligations rated “Caa” are judged to be of poor standing and are subject to very high credit risk.

Ca

—

Obligations rated “Ca” are highly speculative and are likely in, or very near, default, with some prospect of recovery for principal and interest.

C

—

Obligations rated “C” are the lowest rated class and are typically in default, with little prospect of recovery for principal and interest.

AAA

—

Obligations rated “AAA” by Fitch denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

AA

—

Obligations rated “AA” denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

A

—

Obligations rated “A” denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

BBB

—

Obligations rated “BBB” indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

BB

—

Obligations rated “BB” indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.

B

—

Obligations rated “B” indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

CCC

—

Default is a real possibility.

CC

—

Default of some kind appears probable.

C

—

Default is imminent or inevitable, or the issuer is in standstill.

NR

—

Indicates that the obligation is not rated by Standard & Poor’s, Moody’s or Fitch.

SP-1

—

A short-term obligation rated “SP-1” is rated in the highest category by Standard & Poor’s. Strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation.

SP-2

—

A short-term obligation rated “SP-2” is a Standard & Poor’s rating indicating satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of the notes.

SP-3

—

A short-term obligation rated “SP-3” is a Standard & Poor’s rating indicating speculative capacity to pay principal and interest.

A-1

—

A short-term obligation rated “A-1” is rated in the highest category by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial commitment on these obligations is extremely strong.

A-2

—

A short-term obligation rated “A-2” by Standard & Poor’s is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor’s capacity to meet its financial commitment on the obligation is satisfactory.

A-3

—

A short-term obligation rated “A-3” by Standard & Poor’s exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

B

—

A short-term obligation rated “B” by Standard & Poor’s is regarded as having significant speculative characteristics. Ratings of “B-1”, “B-2” and “B-3” may be assigned to indicate finer distinctions within the “B” category. The obligor currently has the capacity to meet its financial commitment on the obligation; however, it faces major ongoing uncertainties which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation.

VMIG 1

—

Moody’s highest rating for issues having a variable rate demand feature — VRDO. This designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price on demand.

VMIG 2

—

This designation denotes strong credit quality. Good protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price on demand.

VMIG 3

—

This designation denotes acceptable credit quality. Adequate protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price on demand.

SG

—

This designation denotes speculative-grade credit quality. Demand features rated in this category may be supported by a liquidity provider that does not have an investment grade short term rating or may lack the structural and/or legal protections necessary to ensure the timely payment of purchase price upon demand.

MIG 1

—

Moody’s highest rating for short-term municipal obligations. This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing.

MIG 2

—

This designation denotes strong credit quality. Margins of protection are ample, although not as large as the preceding group.

MIG 3

—

This designation denotes acceptable credit quality. Liquidity and cash flow protection may be narrow, and market access for refinancing is likely to be less well-established.

SG

—

This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection.

P-1

—

Moody’s highest rating for commercial paper and for VRDO prior to the advent of the VMIG 1 rating. Have a superior ability to repay short-term debt obligations.

P-2

—

Have a strong ability to repay short-term debt obligations.

P-3

—

Have an acceptable ability to repay short-term debt obligations.

NP

—

Issuers do not fall within any of the Prime rating categories.

F1

—

Fitch’s highest rating indicating the strongest intrinsic capacity for timely payment of financial commitments; may have an added “+” to denote any exceptionally strong credit feature.

F2

—

Fitch rating indicating good intrinsic capacity for timely payment of financial commitments.

F3

—

Fitch rating indicating intrinsic capacity for timely payment of financial commitments is adequate.

B

—

Fitch rating indicating minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near term changes in financial and economic conditions.

C

—

Fitch rating indicating default is a real possibility.

NR

—

Indicates that the obligation is not rated by Standard & Poor’s, Moody’s or Fitch.

ASSETS

DESCRIPTION

QUOTED
PRICES
(LEVEL 1)

OTHER
SIGNIFICANT
OBSERVABLE
INPUTS
(LEVEL 2)

SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)

TOTAL

Municipal bonds†

—

$

238,727,858

—

$

238,727,858

Short-term investments†

—

2,105,000

—

2,105,000

Total investments

—

$

240,832,858

—

$

240,832,858

Gross unrealized appreciation

$

18,753,252

Gross unrealized depreciation

(105,182

)

Net unrealized appreciation

$

18,648,070

Average Market
Value

Futures contracts (to sell)†

$

4,737,844

Western Asset Municipal Partners Fund Inc.

By

/s/ R. Jay Gerken

R. Jay Gerken

Chief Executive Officer

Date: April 25, 2012

By

/s/ R. Jay Gerken

R. Jay Gerken

Chief Executive Officer

Date: April 25, 2012

By

/s/ Richard F. Sennett

Richard F. Sennett

Principal Financial Officer

Date: April 25, 2012