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 811-08603

Name of Fund: BlackRock Debt Strategies Fund, Inc. (DSU)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Debt Strategies 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: (800) 882-0052, Option 4

Date of fiscal year end: 02/28/2009

Date of reporting period: 09/01/2008 - 11/30/2008

Item 1 - Schedule of Investments

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Corporate Bonds (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense - 2.4% Alliant Techsystems, Inc., 3%, 8/15/24 (a)(b) USD 5,000 $ 5,537,500
 Hawker Beechcraft Acquisition Co. LLC, 8.50%, 4/01/15 4,000 1,880,000
 --------------
 7,417,500
----------------------------------------------------------------------------------------------------------------------------------
Auto Components - 0.2% Allison Transmission, Inc., 11%, 11/01/15 (b) 320 156,800
 Allison Transmission, Inc., 11.25%, 11/01/15 (b)(c) 1,020 413,100
 The Goodyear Tire & Rubber Co., 8.625%, 12/01/11 2 1,492
 Lear Corp., 8.75%, 12/01/16 700 150,500
 Venture Holdings Co. LLC, 12%, 6/01/09 (d)(e)(f) 4,450 --
 Venture Holdings Co. LLC Series B, 9.50%,
 7/01/05 (d)(e)(f)(g) 1,800 180
 --------------
 722,072
----------------------------------------------------------------------------------------------------------------------------------
Building Products - 3.4% Building Materials Corp. of America, 7.75%, 8/01/14 4,000 2,540,000
 CPG International I, Inc., 9.904%, 7/01/12 (h) 7,500 4,200,000
 CPG International I, Inc., 10.50%, 7/01/13 1,300 728,000
 Momentive Performance Materials, Inc. Series WI, 9.75%,
 12/01/14 1,600 620,000
 Ply Gem Industries, Inc., 11.75%, 6/15/13 4,500 2,666,250
 --------------
 10,754,250
----------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 2.2% E*Trade Financial Corp., 12.50%, 11/30/17 (b) 10,625 6,959,375
----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 7.2% American Pacific Corp., 9%, 2/01/15 1,490 1,296,300
 ARCO Chemical Co., 9.80%, 2/01/20 3,550 1,136,000
 GEO Specialty Chemicals Corp., 7.50%, 3/31/15 (a)(b)(c)(e) 3,917 2,933,054
 GEO Specialty Chemicals, Inc., 12.553%, 12/31/09 (a) 6,415 4,803,231
 Hexion U.S. Finance Corp., 6.649%, 11/15/14 (h) 4,600 2,254,000
 MacDermid, Inc., 9.50%, 4/15/17 (b) 6,360 3,434,400
 NOVA Chemicals Corp., 5.72%, 11/15/13 (h) 12,305 6,583,175
 --------------
 22,440,160
----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & US Investigations Services, Inc., 10.50%, 11/01/15 (b) 3,400 2,482,000
Supplies - 1.3% West Corp., 11%, 10/15/16 3,270 1,406,100
 --------------
 3,888,100
----------------------------------------------------------------------------------------------------------------------------------
Construction Materials - 2.1% Nortek Holdings, Inc., 10%, 12/01/13 6,830 4,781,000
 Nortek, Inc., 8.50%, 9/01/14 5,850 1,784,250
 --------------
 6,565,250
----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 5.5% Berry Plastics Holding Corp., 5.871%, 9/15/14 (h) 375 176,250
 Packaging Dynamics Finance Corp., 10%, 5/01/16 (b) 6,215 2,858,900
 Smurfit Kappa Funding Plc, 7.75%, 4/01/15 13,625 9,128,750
 Smurfit-Stone Container Enterprises, Inc., 8.375%, 7/01/12 1,600 448,000
 Smurfit-Stone Container Enterprises, Inc., 8%, 3/15/17 2,600 689,000
 Wise Metals Group LLC, 10.25%, 5/15/12 6,325 3,889,875
 --------------
 17,190,775
----------------------------------------------------------------------------------------------------------------------------------

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Corporate Bonds (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Diversified Consumer NBC Acquisition Corp., 11%, 3/15/13 (i)
Services - 0.6% USD 3,875 $ 1,976,250
----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Archimedes Funding III Ltd., 5.50%, 11/29/11 (b) 5,744 2,010,291
Services - 2.8% FCE Bank Plc, 7.125%, 1/16/12 EUR 7,800 5,450,457
 Ford Motor Credit Co. LLC, 7.569%, 1/13/12 (h) USD 2,680 1,179,200
 --------------
 8,639,948
----------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Qwest Corp., 5.246%, 6/15/13 (h) 1,675 1,172,500
Services - 0.4%
----------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 1.3% NSG Holdings LLC, 7.75%, 12/15/25 (b) 5,380 4,196,400
----------------------------------------------------------------------------------------------------------------------------------
Electronic Equipment & Muzak Holdings, LLC, 13%, 3/15/10 (i) 2,675 668,750
Instruments - 0.2%
----------------------------------------------------------------------------------------------------------------------------------
Food & Staples Retailing - 0.2% Rite Aid Corp., 9.375%, 12/15/15 1,910 563,450
----------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & DJO Finance LLC, 10.875%, 11/15/14 8,750 6,387,500
Supplies - 2.0%
----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & Community Health Systems, Inc. Series WI, 8.875%, 7/15/15 4,000 3,210,000
Services - 1.4% Tenet Healthcare Corp., 6.375%, 12/01/11 515 391,400
 Tenet Healthcare Corp., 6.50%, 6/01/12 1,150 839,500
 --------------
 4,440,900
----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure - HRP Myrtle Beach Holdings LLC, 14.50%, 4/01/14 (b)(d) 7,141 35,707
4.3% HRP Myrtle Beach Operations LLC, 7.383%, 4/01/12 (b)(d) 5,000 2,200,000
 HRP Myrtle Beach Operations LLC, 12.50%, 4/01/13 (b)(d) 5,000 950,000
 Harrah's Operating Co., Inc., 10.75%, 2/01/16 (b) 9,131 2,031,647
 Harrah's Operating Co., Inc., 10.75%, 2/01/18 (b)(c) 4,260 380,680
 Little Traverse Bay Bands of Odawa Indians, 10.25%, 2/15/14 (b) 2,560 1,676,800
 Shingle Springs Tribal Gaming Authority, 9.375%, 6/15/15 (b) 1,370 616,500
 Snoqualmie Entertainment Authority, 6.875%, 2/01/14 (b)(h) 1,015 598,850
 Station Casinos, Inc., 7.75%, 8/15/16 3,400 1,037,000
 Travelport LLC, 6.828%, 9/01/14 (h) 2,160 518,400
 Tropicana Entertainment LLC Series WI, 9.625%, 12/15/14 (d)(f) 530 18,550
 Tunica-Biloxi Gaming Authority, 9%, 11/15/15 (b) 3,000 2,535,000
 Universal City Florida Holding Co. I, 7.943%, 5/01/10 (h) 2,000 920,000
 --------------
 13,519,134
----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.2% Stanley-Martin Communities LLC, 9.75%, 8/15/15 2,250 596,250
----------------------------------------------------------------------------------------------------------------------------------
IT Services - 0.5% First Data Corp., 9.875%, 9/24/15 2,500 1,437,500
----------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Future Holding Corp., 11.25%, 11/01/17 (b)(c) 3,200 1,704,000
Energy Traders - 1.4%

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Corporate Bonds (000) Value
----------------------------------------------------------------------------------------------------------------------------------
 Texas Competitive Electric Holdings Co. LLC, 10.25%,
 11/01/15 (b) USD 2,000 $ 1,280,000
 Texas Competitive Electric Holdings Co. LLC, 10.50%,
 11/01/16 (b)(c) 2,400 1,296,000
 --------------
 4,280,000
----------------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates - 1.6% Sequa Corp., 11.75%, 12/01/15 (b) 5,100 2,244,000
 Sequa Corp., 13.50%, 12/01/15 (b)(c) 6,823 2,908,196
 --------------
 5,152,196
----------------------------------------------------------------------------------------------------------------------------------
Insurance - 2.4% Alliant Holdings I, Inc., 11%, 5/01/15 (b) 2,500 1,781,250
 American International Group, Inc., 8.25%, 8/15/18 (b) 7,500 5,003,985
 USI Holdings Corp., 6.024%, 11/15/14 (b)(h) 1,630 670,337
 --------------
 7,455,572
----------------------------------------------------------------------------------------------------------------------------------
Machinery - 1.4% ESCO Corp., 5.871%, 12/15/13 (b)(h) 3,070 1,995,500
 RBS Global, Inc., 8.875%, 9/01/16 1,685 1,044,700
 Titan International, Inc., 8%, 1/15/12 1,530 1,193,400
 --------------
 4,233,600
----------------------------------------------------------------------------------------------------------------------------------
Marine - 0.2% Navios Maritime Holdings, Inc., 9.50%, 12/15/14 465 279,000
 Titan Petrochemicals Group Ltd., 8.50%, 3/18/12 (b) 1,760 440,000
 --------------
 719,000
----------------------------------------------------------------------------------------------------------------------------------
Media - 4.6% Affinion Group, Inc., 10.125%, 10/15/13 1,080 739,800
 Canadian Satellite Radio Holdings, Inc., 12.75%, 2/15/14 5,000 1,650,000
 Charter Communications Holdings LLC, 10%, 4/01/09 2,402 2,113,760
 Charter Communications Holdings LLC, 11.125%, 1/15/11 1,319 547,385
 Charter Communications Holdings LLC, 10%, 5/15/11 1,978 810,980
 Local Insight Regatta Holdings, Inc., 11%, 12/01/17 2,665 1,252,550
 Network Communications, Inc., 10.75%, 12/01/13 20 6,600
 Nielsen Finance LLC, 10%, 8/01/14 2,000 1,440,000
 Sinclair Broadcast Group, Inc. Class A, 4.875%, 7/15/18 (i) 3,235 1,730,725
 TL Acquisitions, Inc., 10.50%, 1/15/15 (b) 5,230 2,824,200
 Virgin Media, Inc., 6.50%, 11/15/16 (a)(b) 3,000 1,248,750
 --------------
 14,364,750
----------------------------------------------------------------------------------------------------------------------------------
Metals & Mining - 2.4% Aleris International, Inc., 9%, 12/15/14 (c) 1,100 66,000
 Aleris International, Inc., 10%, 12/15/16 1,500 157,500
 RathGibson, Inc., 11.25%, 2/15/14 4,440 2,708,400
 Ryerson, Inc., 10.568%, 11/01/14 (b)(h) 6,720 4,435,200
 --------------
 7,367,100
----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels - Chaparral Energy, Inc., 8.50%, 12/01/15 1,410 521,700
0.9% Compton Petroleum Finance Corp., 7.625%, 12/01/13 2,220 910,200
 SandRidge Energy, Inc., 7.508%, 4/01/14 (h) 2,000 1,335,266
 --------------
 2,767,166
----------------------------------------------------------------------------------------------------------------------------------

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Corporate Bonds (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 7.1% Abitibi-Consolidated, Inc., 5.496%, 6/15/11 (h) USD 6,500 $ 975,000
 Ainsworth Lumber Co. Ltd., 11%, 7/29/15 (b) 9,811 6,573,284
 Bowater, Inc., 9%, 8/01/09 640 278,400
 Bowater, Inc., 4.996%, 3/15/10 (h) 7,600 2,508,000
 Domtar Corp., 7.125%, 8/15/15 3,775 2,567,000
 NewPage Corp., 9.443%, 5/01/12 (h) 8,000 4,200,000
 NewPage Corp., 10%, 5/01/12 2,720 1,468,800
 NewPage Corp., 12%, 5/01/13 3,325 1,147,125
 Verso Paper Holdings LLC Series B, 6.943%, 8/01/14 (h) 4,400 2,376,000
 --------------
 22,093,609
----------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 2.5% Angiotech Pharmaceuticals, Inc., 5.953%, 12/01/13 (h) 5,000 2,850,000
 Elan Finance Plc, 6.149%, 11/15/11 (h) 4,825 2,726,125
 Elan Finance Plc, 7.75%, 11/15/11 3,525 2,115,000
 --------------
 7,691,125
----------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts RAIT Financial Trust, 6.875%, 4/15/27 (a)(b) 3,500 1,365,000
(REITs) - 0.4%
----------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & Realogy Corp., 10.50%, 4/15/14 6,500 1,137,500
Development - 0.6% Realogy Corp., 12.375%, 4/15/15 5,333 853,280
 --------------
 1,990,780
----------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.0% Swift Transportation Co., Inc., 9.899%, 5/15/15 (b)(h) 1,350 155,250
----------------------------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor Spansion, Inc., 5.328%, 6/01/13 (b)(h) 3,370 707,700
Equipment - 0.2%
----------------------------------------------------------------------------------------------------------------------------------
Software - 0.2% BMS Holdings, Inc., 10.595%, 2/15/12 (b)(c)(h) 1,477 561,141
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 2.4% Buffets, Inc., 12.50%, 11/01/14 (d)(f) 1,440 3,600
 General Nutrition Centers, Inc., 7.584%, 3/15/14 (c)(h) 5,560 3,169,200
 General Nutrition Centers, Inc., 10.75%, 3/15/15 4,480 2,576,000
 Michaels Stores, Inc., 10%, 11/01/14 2,240 705,600
 Michaels Stores, Inc., 11.375%, 11/01/16 2,785 612,700
 United Auto Group, Inc., 7.75%, 12/15/16 1,380 503,700
 --------------
 7,570,800
----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Digicel Group Ltd., 8.875%, 1/15/15 (b) 3,560 1,833,400
Services - 3.0% Digicel Group Ltd., 9.125%, 1/15/15 (b)(c) 7,248 3,660,240
 FiberTower Corp., 9%, 11/15/12 (a)(b) 2,150 647,687
 FiberTower Corp., 9%, 11/15/12 (a) 350 105,437
 iPCS, Inc., 5.318%, 5/01/13 (h) 1,250 875,000
 Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (b) 2,600 1,885,000
 Orascom Telecom Finance SCA, 7.875%, 2/08/14 (b) 755 415,250
 --------------
 9,422,014
----------------------------------------------------------------------------------------------------------------------------------
 Total Corporate Bonds - 69.5% 217,432,867
----------------------------------------------------------------------------------------------------------------------------------

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense - 0.2% IAP Worldwide Services, Inc. Term Loan, 8.063%, 12/31/12 USD 1,050 $ 645,646
----------------------------------------------------------------------------------------------------------------------------------
Airlines - 0.8% Delta Air Lines, Inc. Credit-Linked Deposit Loan,
 1.751% - 4.581%, 4/30/12 1,980 1,309,275
 US Airways Group, Inc. Term Loan, 3.936%, 3/23/14 2,227 1,025,752
 --------------
 2,335,027
----------------------------------------------------------------------------------------------------------------------------------
Auto Components - 3.3% Allison Transmission, Inc. Term Loan, 4.38% - 5.57%, 8/07/14 7,574 4,511,804
 Dana Holding Corp. Term Advance, 6.75% - 8.02%, 1/31/15 2,972 1,763,530
 Goodyear Tire & Rubber Co., Second Lien Term Loan, 2.90%,
 4/30/14 2,000 1,250,000
 Intermet Corp. Letter of Credit, 1.648% - 6.88%, 11/08/10 (d) 1,688 1,350,320
 Intermet Corp. Line of Credit, 7.814%, 11/09/10 78 62,784
 Intermet Corp. Term Loan B, 7.817%, 11/08/10 (d) 1,169 935,278
 Intermet Corp. Term Loan B, 7.817%, 5/15/11 122 97,874
 Metaldyne Co. LLC DF Loan, 1.751% - 8.313%, 1/11/12 87 29,423
 Metaldyne Co. LLC Initial Tranche Term Loan B, 7.875%, 1/11/14 588 200,077
 --------------
 10,201,090
----------------------------------------------------------------------------------------------------------------------------------
Automobiles - 0.2% Ford Motor Co. Term Loan, 4.43%, 12/15/13 996 398,353
 General Motors Corp. Term Loan B, 5.795%, 11/29/13 796 306,441
 --------------
 704,794
----------------------------------------------------------------------------------------------------------------------------------
Beverages - 0.1% Culligan International Second Lien Term Loan, 9.184% -
 9.711%, 4/24/13 EUR 1,500 343,036
----------------------------------------------------------------------------------------------------------------------------------
Biotechnology - 0.4% Talecris Biotherapeutics Holdings Corp. First Lien Term
 Loan, 4.91% - 5.64%, 12/06/13 USD 1,485 1,302,988
----------------------------------------------------------------------------------------------------------------------------------
Building Products - 1.3% Building Material Corp. of America Term Loan Advance,
 6.50% - 6.625%, 2/22/14 2,985 1,839,518
 Masonite International Term Loan, 5%, 4/06/13 1,943 1,125,007
 Masonite International U.S. Term Loan, 5%, 4/06/13 1,962 1,135,954
 --------------
 4,100,479
----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 4.4% Huish Detergents, Inc. Tranche Term Loan B, 5.77%, 4/26/14 2,970 2,311,620
 PQ Corp. (Niagara Acquisition, Inc.) First Lien Term Loan,
 6.72% - 7.02%, 5/29/16 1,995 1,234,406
 PQ Corp. (Niagara Acquisition, Inc.) Second Lien Term Loan,
 9.97%, 5/29/15 12,500 5,937,500
 Rockwood Specialties Group, Inc. Tranche E Term Loan,
 3.546%, 12/13/12 614 491,424
 Solutia, Inc. Term Loan, 8.50%, 2/28/14 3,242 2,374,644

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
 Wellman, Inc. Second Lien Term Loan, 11.661%, 2/10/10 (d)(f) USD 10,000 $ 1,500,000
 --------------
 13,849,594
----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & Supplies - ARAMARK Corp. Line of Credit Facility Letter of Credit,
2.5% 2.469%, 1/26/14 235 186,214
 ARAMARK Corp. U.S. Term Loan, 5.637%, 1/26/14 3,701 2,931,139
 John Maneely Co. Term Loan, 5.856% - 8%, 12/28/13 1,337 839,379
 NES Rentals Holdings, Inc. Term Loan C, 9.125%, 7/12/13 3,020 1,328,798
 West Corp. Term Loan B-2, 3.774% - 4.733%, 10/31/13 3,940 2,445,297
 --------------
 7,730,827
----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 0.2% SafeNet, Inc. First Lien Term Loan, 7.75%, 5/11/15 988 513,500
----------------------------------------------------------------------------------------------------------------------------------
Computers & Peripherals - 0.4% Intergraph Corp. First Lien Initial Term Loan, 4.196%, 5/15/14 419 321,345
 Intergraph Corp. Second Lien Term Loan, 8.196%, 11/17/14 1,000 765,000
 --------------
 1,086,345
----------------------------------------------------------------------------------------------------------------------------------
Construction & Engineering - 0.1% Brand Energy & Infrastructure Services, Inc.
 (FR Brand Acquisition Corp.) Letter of Credit,
 4.625% - 6.063%, 1/31/14 493 332,438
----------------------------------------------------------------------------------------------------------------------------------
Construction Materials - 0.5% Headwaters, Inc. Term Loan B-1 (First Lien), 8.27%, 4/30/11 1,869 1,682,143
----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 1.1% Berry Plastics Group, Inc. Term Loan B, 11.334%, 6/15/14 9,685 2,905,656
 Consolidated Container Co. LLC Second Lien Term Loan,
 7.123% - 8.106%, 7/14/14 350 61,250
 Graham Packaging Co., L.P. New Term Loan,
 4.438% - 6.313%, 9/30/11 489 370,962
 --------------
 3,337,868
----------------------------------------------------------------------------------------------------------------------------------
Distributors - 0.3% Keystone Automotive Operations, Inc. Term Loan,
 4.909% - 5.633%, 1/12/12 1,668 834,162
----------------------------------------------------------------------------------------------------------------------------------
Diversified Consumer Services - Coinmach Corp. Term Loan,
1.3% 4.46% - 5.22%, 11/15/14 5,224 3,917,763
----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Services - J.G. Wentworth LLC First Lien Term Loan, 6.012%,
0.4% 4/03/14 4,000 1,300,000
----------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Hawaiian Telcom Term Loan C, 6.262%, 6/01/14 (e) 4,500 1,792,499
Services - 2.1% Winstar Communications Debtor In Possession, 6.366%,
 12/31/06 (d)(f)(g) 3,162 4,782,330
 --------------
 6,574,829
----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.3% Generac Acquisition Corp. First Lien Term Loan, 6.65%, 11/10/13 1,749 1,042,426
----------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & Dresser, Inc. Second Lien Term Loan, 7.986%, 5/15/15 2,500 1,431,250
Services - 1.6% Dresser, Inc. Term Loan B, 3.686% - 4.486%, 5/15/14 2,912 1,983,617
 MEG Energy Corp. Delayed Draw Term Loan, 5.77%, 3/23/13 1,242 832,266

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
 MEG Energy Corp. Initial Term Loan, 5.77%, 3/23/13 USD 1,219 $ 816,563
 --------------
 5,063,696
----------------------------------------------------------------------------------------------------------------------------------
Food & Staples Retailing - 0.5% Bolthouse Farms, Inc. Second Lien Term Loan, 9.262%, 12/01/13 1,000 645,000
 DS Waters of America, Term Loan, 5.409%, 3/31/12 1,000 600,000
 McJunkin Corp. Term Loan, 7.012%, 1/30/14 491 391,035
 --------------
 1,636,035
----------------------------------------------------------------------------------------------------------------------------------
Food Products - 2.1% Dole Food Co., Inc. Credit-Linked Deposit, 4.689%, 4/12/13 608 427,482
 Dole Food Co., Inc. Tranche Term Loan B, 3.50% - 5%, 4/12/13 1,078 757,676
 Dole Food Co., Inc. Tranche Term Loan C, 3.50% - 6.813%,
 4/12/13 4,016 2,822,880
 Jetro Holdings, Inc. Term Loan, 4.02%, 5/11/14 1,938 1,530,625
 Sturm Foods, Inc. First Lien Initial Term Loan,
 5.875% - 6%, 1/22/14 (c) 985 568,838
 Sturm Foods, Inc. Second Lien Initial Term Loan, 9.50%, 6/30/14 1,250 581,250
 --------------
 6,688,751
----------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & Biomet, Inc. Dollar Term Loan, 6.762%, 3/25/15 1,985 1,610,922
Supplies - 1.3% DJO Finance LLC Term Loan, 4.436% - 6.762%, 11/20/13 3,474 2,605,313
 --------------
 4,216,235
----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & CCS Medical, Inc. First Lien Term Loan, 7.02%, 8/01/12 475 238,832
Services - 0.8% Rotech Healthcare, Inc. Term Loan B, 9.135%, 9/26/11 3,578 2,325,767
 --------------
 2,564,599
----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Golden Nugget, Inc. Term Loan Second Lien, 4.69%, 11/30/14 1,500 225,000
Leisure - 2.6% Green Valley Ranch Gaming, LLC Term Loan, 5.018%, 2/26/14 750 52,500
 HRP Myrtle Beach Term Loan, 18.50% - 19.359%, 12/31/08 157 156,600
 Harrah's Operating Co., Inc. Term Loan B-1,
 6.535% - 6.762%, 1/28/15 553 323,170
 Harrah's Operating Co., Inc. Term Loan B-2, 6.535% -
 6.762%, 1/28/15 697 406,582
 Harrah's Operating Co., Inc. Term Loan B-3, 4.436% -
 6.762%, 1/28/15 492 286,538
 Las Vegas Sands LLC Delay Draw Term Loan, 5.52%, 5/23/14 798 385,257
 Las Vegas Sands LLC Tranche Term Loan B,
 5.52%, 5/04/14 3,160 1,525,578
 OSI Restaurant Partners, Inc. Revolving Credit, 2.639%, 5/15/14 75 32,782

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
 OSI Restaurant Partners, Inc. Term Loan B, 3.75%, 5/15/14 USD 883 $ 384,804
 QCE LLC Second Lien Term Loan, 9.512%, 11/05/13 6,000 2,850,000
 VML US Finance LLC Delay Draw Term Loan, 6.02%, 5/25/12 1,279 716,024
 VML US Finance LLC Term Loan B, 6.02%, 5/25/13 1,221 683,987
 --------------
 8,028,822
----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 1.0% American Residential Services LLC Second Lien Term Loan,
 10%, 4/17/15 3,015 2,974,553
----------------------------------------------------------------------------------------------------------------------------------
Household Products - 0.8% Spectrum Brands, Inc. Letter of Credit, 2.70%, 4/15/13 282 167,459
 Spectrum Brands, Inc. Term Loan B-1, 5.768% - 8.32%, 4/15/13 4,104 2,437,912
 --------------
 2,605,371
----------------------------------------------------------------------------------------------------------------------------------
IT Services - 2.1% Activant Solutions Inc. Term Loan B, 6.063% - 6.25%, 5/02/13 3,560 2,171,562
 Audio Visual Services Group, Inc. Tranche Lien
 Term Loan B, 9.27%, 8/28/13 1,000 325,000
 Ceridian Corp. U.S. Term Loan, 4.423%, 11/09/14 3,500 2,520,000
 First Data Corp. Term Loan B-2, 4.149% - 6.512%, 9/24/14 977 661,005
 RedPrairie Corp. Term Loan, 5.188% - 6%, 7/17/12 883 662,205
 RedPrairie Corp. Term Loan, 5.875%, 7/17/12 295 221,063
 --------------
 6,560,835
----------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers & Texas Competitive Electric Holdings Co. LLC
Energy Traders - 0.7% Term Loan B-2, 5.268% - 7.262%, 10/10/14 2,970 2,007,686
 Texas Competitive Electric Holdings Co. LLC Term Loan B-3,
 5.268% - 7.262%, 10/10/14 200 134,950
 --------------
 2,142,636
----------------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates - 0.3% Sequa Corp. Term Loan B, 5.02% - 7.02%, 12/03/14 1,395 951,959
----------------------------------------------------------------------------------------------------------------------------------
Insurance - 0.4% Alliant Holdings I, Term Loan, 6.762%, 10/23/14 1,980 1,257,300
----------------------------------------------------------------------------------------------------------------------------------
Internet & Catalog Retail - 0.4% FTD Group, Inc. Tranche Term Loan B, 7.50% - 8.035%, 8/26/14 1,500 1,297,500
----------------------------------------------------------------------------------------------------------------------------------
Machinery - 2.1% Harrington Holdings, Inc. First Lien Term Loan, 3.686%,
 1/11/14 985 748,600
 Navistar International Corp. Revolving Credit-Linked Deposit,
 4.686% - 7.126%, 1/19/12 1,867 1,008,000
 Navistar International Corp. Term Advance, 4.686%, 1/19/12 5,133 2,772,000
 OshKosh Truck Corp. Term Loan B, 2.93% - 4.62%, 12/06/13 1,780 1,117,585
 Rexnord Corp. Payment In Kind Term Loan, 9.81%, 3/02/13 1,261 983,565
 --------------
 6,629,750
----------------------------------------------------------------------------------------------------------------------------------

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Media - 12.9% Affinion Group Holdings, Inc. Term Loan, 9.868%, 3/01/12 USD 4,000 $ 1,600,000
 Cequel Communications, LLC (Cebridge) Second Lien Term Loan,
 8.235% - 9.193%, 5/05/14 10,251 5,638,149
 Cequel Communications, LLC (Cebridge) Term Loan B, 4.235% -
 6.334%, 11/05/13 1,574 1,048,356
 ClientLogic Holding Corp. Term Loan B,
 4.678% - 6.789%, 1/30/14 911 500,864
 Easton-Bell Sports, Inc. Term Loan B, 9.27%, 5/01/12 4,448 1,556,808
 Education Media and Publishing Group Ltd. First Lien Term
 Loan B, 7.516%, 11/14/14 5,053 3,183,409
 Education Media and Publishing Group Ltd. Second Lien Term
 Loan, 13.016%, 11/14/14 18,834 11,300,634
 Ellis Communications Term Loan, 10%, 12/30/11 6,330 3,797,986
 GateHouse Media Operating, Inc. Delay Draw Term Loan,
 4.20% - 5%, 9/15/14 347 79,833
 GateHouse Media Operating, Inc. Initial
 Term Loan B, 4.20%, 8/28/14 670 154,000
 Getty Images, Inc. Initial Term Loan, 8.053%,
 6/30/15 1,000 853,750
 Insight Midwest Holdings, LLC Delay Draw Term Loan,
 4.85%, 4/06/14 1,025 796,572
 Multicultural Radio Broadcasting Inc. Term Loan,
 4.928%, 12/15/12 423 295,750
 NEP II Inc. Term Loan B, 6.012%, 2/16/14 985 640,244
 Newsday, LLC Term Loan, 9.75%, 7/02/13 3,250 2,697,500
 Penton Media Inc. Second Lien Term Loan, 8.42%, 2/01/14 1,000 400,000
 ProSiebenSat.1 Media AG Term Loan B, 7.526%, 6/30/15 EUR 337 39,225
 ProSiebenSat.1 Media AG Term Loan B, 7.776%, 6/30/16 674 78,449
 Thomson Learning, Inc. Term Loan B-2, 7.50%, 7/05/14 USD 6,733 5,655,825
 --------------
 40,317,354
----------------------------------------------------------------------------------------------------------------------------------
Metals & Mining - 0.6% Euramax International Plc First Lien Term Loan, 7.50%,
 6/29/12 2,436 1,144,828
 Euramax International Plc Second Lien Term Loan, 11.75%,
 6/29/13 2,500 875,000
 --------------
 2,019,828
----------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 0.7% Coleto Creek Letter of Credit, 6.512%, 7/31/13 452 314,787
 Coleto Creek Term Loan B, 3.662%, 7/31/13 32 22,187
 Energy Transfer Equity, LP Term Loan B, 4.138%, 11/01/12 750 609,750
 NE Energy Second Lien Term Loan, 7.711%, 10/31/14 750 555,000

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
 USPF Holdings Term Loan, 3.159%, 4/15/14 USD 925 $ 684,825
 --------------
 2,186,549
----------------------------------------------------------------------------------------------------------------------------------
Multiline Retail - 0.5% Neiman Marcus Group, Inc. Term Loan, 4.565%, 4/06/13 2,500 1,562,500
----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Big West Oil & Gas Delay Advanced Term Loan, 5.25%, 5/15/14 962 529,375
Fuels - 3.9% Big West Oil & Gas Initial Finance Term Loan, 5.25%, 5/15/14 766 421,094
 Petroleum Geo-Services ASA Term Loan, 5.51%, 6/06/15 1,907 1,401,400
 Scorpion Drilling Ltd. Second Lien Term Loan, 8.936%, 5/05/15 3,500 3,325,000
 Turbo Beta Plc Bridge Loan, 14.50%, 3/15/18 5,958 5,838,759
 Western Refining Inc. LP Term Loan, 9.25%, 5/30/14 1,375 777,127
 --------------
 12,292,755
----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 1.3% Boise Paper Holdings LLC (Aldabra Sub LLC)
 Second Lien Term Loan, 7.50%, 2/05/15 1,492 1,208,925
 Verso Paper Finance Holdings LLC Term Loan, 10.012%, 2/01/13 3,671 2,796,354
 --------------
 4,005,279
----------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 0.1% Pharmaceutical Technologies & Services (PTS)
 Term Loan, 6.012%, 4/10/14 513 310,703
----------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & Enclave First Lien Term Loan, 6.14%, 3/01/12 4,000 2,619,601
Development - 1.7% Georgian Towers Term Loan, 6.14%, 3/01/12 4,000 2,717,948
 --------------
 5,337,549
----------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.8% Rail America, Inc. Canadian Term Loan, 7.883%, 6/30/09 242 198,419
 Rail America, Inc. Term Loan, 7.883%, 6/30/09 744 610,429
 Rail America, Inc. U.S. Term Loan, 7.883%, 6/30/09 1,878 1,540,288
 --------------
 2,349,136
----------------------------------------------------------------------------------------------------------------------------------
Software - 1.1% Aspect Software Second Lien Term Loan, 9.188%, 7/05/12 7,000 3,500,000
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.6% ADESA, Inc. (KAR Holdings Inc.) Initial Term Loan B, 6.02%,
 10/20/13 1,914 1,135,774
 Claire's Stores Inc. Term Loan B, 4.186% - 6.512%, 5/29/14 1,476 606,668
 --------------
 1,742,442
----------------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods - Renfro Corp. Tranche Term Loan B, 5.42% - 7.02%,
0.1% 9/30/13 692 276,978
----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication IPC Systems Inc. Tranche Term Loan B-1, 6.012%, 5/31/14 1,853 917,373
Services - 0.3%
----------------------------------------------------------------------------------------------------------------------------------
 Total Floating Rate Loan Interests - 61.2% 191,271,443
----------------------------------------------------------------------------------------------------------------------------------
Industry Common Stocks Shares
----------------------------------------------------------------------------------------------------------------------------------
Building Products - 0.0% Neenah Enterprises Inc. (f) 144,858 50,700
----------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 0.2% E*Trade Financial Corp. (f) 484,043 653,458
----------------------------------------------------------------------------------------------------------------------------------

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

Industry Common Stocks Shares Value
----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 0.0% GEO Specialty Chemicals, Inc. (e)(i) 339,340 $ 130,273
 GenTek Inc. (f) 403 7,423
 --------------
 137,696
----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & New Outsourcing Solutions, Inc. (f) 90,876 181,752
Supplies - 0.1%
----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 0.4% Loral Space & Communications Ltd. (f) 150,354 1,270,491
----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 0.3% Smurfit Kappa Plc 36,342 85,721
 Viskase Cos., Inc. (f) 1,428,423 714,211
 --------------
 799,932
----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Preferred Term Securities VI, Ltd. (b)(f) 35,000 980,000
Services - 0.3%
----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.1% Medis Technologies Ltd. (f) 286,757 192,127
 SunPower Corp. Class B (f) 4,893 127,307
 --------------
 319,434
----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure - HRP PIK Corp. Class B (b)(e)(f) 5,000 50
0.0% Lodgian, Inc. (f) 27,787 61,131
 --------------
 61,181
----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable EXCO Resources, Inc. (f) 378,859 2,905,849
Fuels - 0.9%
----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 0.9% Ainsworth Lumber Co. Ltd. 1,190,019 1,256,995
 Ainsworth Lumber Co. Ltd. (b) 1,335,501 1,409,528
 Western Forest Products, Inc. (b)(f) 211,149 83,424
 --------------
 2,749,947
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.6% Movie Gallery, Inc. (f) 503,737 2,014,948
----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication American Tower Corp. Class A (f) 18,671 508,598
Services - 0.2%
----------------------------------------------------------------------------------------------------------------------------------
 Total Common Stocks - 4.0% 12,633,986
----------------------------------------------------------------------------------------------------------------------------------
 Preferred Securities
----------------------------------------------------------------------------------------------------------------------------------
 Par
 Capital Trusts (000)
----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Citigroup, Inc., 8.40% (g)(j) USD 4,200 2,479,890
Services - 0.8%
----------------------------------------------------------------------------------------------------------------------------------
 Total Preferred Securities - 0.8% 2,479,890
----------------------------------------------------------------------------------------------------------------------------------
 Warrants (k) Shares
----------------------------------------------------------------------------------------------------------------------------------
Building Products - 0.0% Neenah Enterprises Inc. (expires 9/30/13) 130,547 39,164
----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 0.0% GenTek Inc. Tranche C (expires 11/10/10) 231 693
----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & HealthSouth Corp. (expires 1/16/14) 126,761 1
Services - 0.0%
----------------------------------------------------------------------------------------------------------------------------------
Media - 0.0% Sirius Satellite Radio, Inc. (expires 5/15/09) 15,000 75
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.0% Movie Gallery, Inc. (expires 5/15/15) (e) 62,323 31,162
----------------------------------------------------------------------------------------------------------------------------------
 Total Warrants - 0.0% 71,095
----------------------------------------------------------------------------------------------------------------------------------
 Beneficial
 Interest
 Other Interests (l) (000)
----------------------------------------------------------------------------------------------------------------------------------
Airlines - 0.1% Delta Air Lines, Inc. Default 8.33% Escrow USD 5,505 82,575
 Delta Air Lines, Inc. Default 10% Escrow 4,200 63,000
 --------------
 145,575
----------------------------------------------------------------------------------------------------------------------------------
Media - 0.0% Adelphia Escrow (e) 7,500 750

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)


(Percentages shown are based on Net Assets) 

 Beneficial
 Interest
Industry Other Interests (l) (000) Value
----------------------------------------------------------------------------------------------------------------------------------
 Adelphia Preferred Escrow (e) USD 5 1
 Adelphia Recovery Trust (e) 9,406 $ 37,624
 Adelphia Recovery Trust Series ACC-6B INT (e) 500 50
 --------------
 38,425
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.0% Movie Gallery, Inc. Default Escrow (e) 21,700 217
----------------------------------------------------------------------------------------------------------------------------------
 Total Other Interests - 0.1% 184,217
----------------------------------------------------------------------------------------------------------------------------------
 Total Long-Term Investments
 (Cost - $783,104,312) - 135.6% 424,073,498
----------------------------------------------------------------------------------------------------------------------------------
 Short-Term Securities
----------------------------------------------------------------------------------------------------------------------------------
 BlackRock Liquidity Series, LLC
 Cash Sweep Series, 1.64% (m)(n) 2,765 2,764,966
----------------------------------------------------------------------------------------------------------------------------------
 Total Short-Term Securities
 (Cost - $2,764,966) - 0.9% 2,764,966
----------------------------------------------------------------------------------------------------------------------------------
 Total Investments (Cost - $785,869,278*) - 136.5% 426,838,464

 Liabilities in Excess of Other Assets - (36.5)% (114,206,170)
 --------------
 Net Assets - 100.0% $ 312,632,294
 ==============

* The cost and unrealized appreciation (depreciation) of investments as of November 30, 2008, as computed for federal income tax purposes, were as follows: 

 Aggregate cost $ 786,304,407
 =============
 Gross unrealized appreciation $ 5,014,545
 Gross unrealized depreciation (364,480,488)
 -------------
 Net unrealized depreciation $(359,465,943)
 =============

(a) Convertible 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) Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Security is fair valued.
(f) Non-income producing security.
(g) As a result of bankruptcy proceedings, the company did not repay the principal amount of the security upon maturity.
(h) Variable rate security. Rate shown is as of report date.
(i) Represents a step bond. Rate shown is as of report date.
(j) Security is perpetual in nature and has no stated maturity date.
(k) Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date.
(l) "Other interests" represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(m) Represents the current yield as of report date.
(n) 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: 

--------------------------------------------------------------------------
Affiliate Net Activity Income
--------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
 Cash Sweep Series $2,764,966 $98,023
--------------------------------------------------------------------------

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments November 30, 2008 (Unaudited)

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.

o Foreign currency exchange contracts as of November 30, 2008 were as follows: 

 --------------------------------------------------------------------------
 Unrealized
 Currency Currency Settlement Appreciation
 Purchased Sold Date (Depreciation)
 --------------------------------------------------------------------------
 USD 6,223,987 EUR 4,929,500 12/10/08 $ (37,307)
 USD 633,843 EUR 489,000 12/10/08 12,731
 USD 2,026,599 CAD 2,400,000 1/21/09 90,388
 --------------------------------------------------------------------------
 Total $ 65,812
 ===========

o Currency Abbreviations:
 CAD Canadian Dollar
 EUR Euro
 GBP British Pound
 USD U.S. Dollar

o Credit default swaps on traded indexes - buy protection outstanding as of November 30, 2008 were as follows: 

--------------------------------------------------------------------------
 Pay Notional
 Fixed Amount Unrealized
Issuer Rate Counterparty Expiration (000)(1) Appreciation
--------------------------------------------------------------------------
Dow Jones
CDX North Credit
America High Suisse
Yield Index 5.00% International June 2013 USD 7,440 $ 1,207,528
--------------------------------------------------------------------------

(1) The maximum potential amount the Fund may receive should a negative credit event take place as defined under the terms of the agreement.

o Credit default swaps on traded indexes - sold protection outstanding as of November 30, 2008 were as follows: 

--------------------------------------------------------------------------
 Pay Notional
 Fixed Amount Unrealized
Issuer Rate Counterparty Expiration (000)(1) Depreciation
--------------------------------------------------------------------------
BAA Ferovial
Junior Term Deutsche
Loan 2.00% Bank AG June 2012 GBP 900 $ (307,958)
--------------------------------------------------------------------------

(1) The maximum potential amount the Fund may receive should a negative credit event take place as defined under the terms of the agreement.

o Effective March 1, 2008, the Fund 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, 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 follows:

o Level 1 - price quotations in active markets/exchanges for identical securities

BlackRock Debt Strategies Fund, Inc.
Schedule of Investments November 30, 2008 (Unaudited)

o Level 2 - other observable inputs (including, but not limited to: quoted prices for 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)
o Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund's own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication 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 the Fund's most recent financial statements as contained in its semi-annual report.

The following table summarizes the inputs used as November 30, 2008 in determining the fair valuation of the Fund's investments: 

-------------------------------------------------------------------------------
 Other
 Valuation Investments in Financial
 Inputs Securities Instruments*
-------------------------------------------------------------------------------
Level 1 $ 9,847,357 --
Level 2 324,562,087 $ 1,273,340
Level 3 92,429,020 (307,958)
-------------------------------------------------------------------------------
Total $ 426,838,464 $ 965,382
 ===========

* Other financial instruments are foreign currency exchange contracts and swaps.

The following is a reconciliation of investments for unobservable inputs (Level
3) used in determining fair value: 

--------------------------------------------------------------------------------
 Investments in Other Financial
 Securities Instruments**
--------------------------------------------------------------------------------
Balance, as of March 1, 2008 $ 192,289,712 $ (157,226)
Accrued discounts/premiums 363,895 --
Realized gain (loss) (13,727,935) --
Change in unrealized depreciation (30,155,287) (150,732)
Net purchases (sales) (43,424,963) --
Net transfers in/out of Level 3 (12,916,402) --
--------------------------------------------------------------------------------
Balance, as of November 30, 2008 $ 92,429,020 $ (307,958)
 ====================================

** Other financial instruments are swaps. 

Item 2 - Controls and Procedures

2(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
 13a-15(b) under the Securities Exchange Act of 1934, as amended.

2(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 registrant's last fiscal quarter that have
 materially affected, or are reasonably likely to materially 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 Debt Strategies Fund, Inc. 

By: /s/ Donald C. Burke
 --------------------------------
 Donald C. Burke
 Chief Executive Officer of
 BlackRock Debt Strategies Fund, Inc.

Date: January 20, 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/ Donald C. Burke
 --------------------------------
 Donald C. Burke
 Chief Executive Officer (principal executive officer) of
 BlackRock Debt Strategies Fund, Inc.

Date: January 20, 2009


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

Date: January 20, 2009

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