Fitch Affirms Crown Castle Senior Secured, Series 2010-2, 2010-3, 2010-4, 2010-5 & 2010-6

CHICAGO--()--Fitch Ratings has affirmed the Crown Castle Towers LLC Senior Secured tower revenue notes, series 2010-2 and 2010-3 as follows:

--$350,000,000 class 2010-2 C-2017 at 'Asf'; Outlook Stable;

--$1,250,000,000 class 2010-3 C-2020 at 'Asf'; Outlook Stable.

Fitch has also affirmed the Crown Castle Senior Secured tower revenue notes, series 2010-4, 2010-5 and 2010-6 as follows:

--$250,000,000 class 2010-4 C-2015 at 'Asf'; Outlook Stable;

--$300,000,000 class 2010-5 C-2017 at 'Asf'; Outlook Stable;

--$1,000,000,000 class 2010-6 C-2020 at 'Asf'; Outlook Stable.

The $300 million series 2010-1 class C-2015 was paid in full as of April 2014.

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 notes represent issuers' equity interest in the entities that own, lease, sublease, and operate 11,824 wireless communication sites. The notes issued by both transactions, which are secured by the same pool, are pro rata with regard to losses. Notes from both issuances are interest only until each series' respective 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 May 2014 remittance, aggregate annualized run rate net cash flow increased 21.1% since issuance to $712 million. The Fitch stressed debt service coverage ratio (DSCR) increased from 1.78x at issuance to 2.33x as a result of the increase in net cash flow.

The technology type concentration is stable. As of May 2014, total revenue contributed by telephony tenants was 96.4% which is in-line with 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.

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 then CMBS then Criteria Reports

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'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=748821

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=835997

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Contacts

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

Contacts

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