Fitch Affirms GTP Towers Issuer, LLC Secured Tower Revenue Notes, Global Tower Series 2010-1

CHICAGO--()--Fitch Ratings has affirmed Global Tower Issuer, LLC commercial mortgage pass-through certificates, series 2010-1 as follows:

--$200,000,000 class C at 'A-sf'; Outlook Stable;

--$50,000,000 class F at 'BB-sf'; Outlook Stable.

KEY RATING DRIVERS

The affirmations are due to the stable performance of the collateral since issuance with no significant changes to the collateral composition. The Stable Outlooks reflect the limited prospect for upgrades given the provision to issue additional notes.

RATING SENSITIVITIES

The classes are expected to remain stable based on continued cash flow growth due to annual rent escalations and automatic renewal clauses resulting in higher debt service coverage ratios since issuance. The ratings have been capped at 'A' due to the specialized nature of the collateral and the potential for changes in technology to affect long-term demand for wireless tower space.

The certificates represent beneficial ownership interest in the trust, primary assets of which are 1,195 wireless communication sites securing one fixed-rate loan. As of the March 2014 distribution date, the aggregate principal balance of the notes remains unchanged at $250 million since issuance. The notes are interest only until Feb. 15, 2015, the anticipated repayment date.

As part of its review, Fitch analyzed the collateral data and site information provided by the master servicer, Midland Loan Services. As of the March 2014 remittance, aggregate annualized run rate net cash flow increased 47.1% since issuance to $47.9 million. The Fitch stressed DSCR increased from 1.25x at issuance to 1.88x as a result of the increase in net cash flow.

The technology type concentration is stable. As of March 2014, total revenue contributed by telephony tenants was 97.5% compared to 91.4% at issuance. Lease revenues from telephony tenants have more stable income characteristics than other tenant types due to the strong end-use customer demand for wireless services.

American Tower Corporation, rated 'BBB' by Fitch, acquired 100% of the outstanding common membership interests of MIP Tower Holdings LLC, a private real estate investment trust, which is the parent company of Global Tower Partners (GTP) and assumed the existing GTP debt in October 2013.

As of Jan. 1, 2014, the issuer enacted a collateral substitution to enhance collateral quality for the portfolio with 268 rooftop sites being replaced by 106 tower sites. Pursuant to the transaction documents, the servicer approved the substitution upon satisfaction of the tenant quality tests and cashflow hurdles. The resultant DSCR after substitution exceeded the DSCR immediately preceding the substitution.

Additional information on Fitch's criteria for analyzing U.S. Wireless Tower Transactions is available in the Dec. 3, 2013 report, 'Criteria for Analyzing U.S. Wireless Tower Transactions,' which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'Criteria for Analyzing U.S. Wireless Tower Transactions' (Dec. 3, 2013);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 20, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Criteria for Analyzing U.S. Wireless Tower Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724675

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718468

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=826634

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Contacts

Fitch Ratings
Primary Analyst
David Ro, +1-312-368-3132
Director
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
David Ro, +1-312-368-3132
Director
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com