Fitch Affirms Wireless Capital Partners Secured Wireless Site Contract Rev Notes Series 2010-1

NEW YORK--()--Fitch Ratings affirms WCP Wireless Site Funding LLC, WCP Wireless Site RE Funding LLC, and WCP Wireless Site Non-RE Funding LLC's secured wireless site contract revenue notes series 2010-1 as follows:

--$160.2 million class A at 'Asf'; Outlook Stable;

--$55 million class B at 'BBB-sf'; Outlook Stable;

--$50 million class C at 'BB-sf'; Outlook Stable.

KEY RATING DRIVERS

The affirmations are due to the stable performance of the collateral since issuance. In addition, the transaction has paid down 18.9% as of August 2014 since issuance, which includes proceeds from loan asset prepayments. As part of its collateral review, Fitch analyzed the information and data file provided by the trustee and the master servicer, Midland Loan Services, respectively.

As of August 2014, the reported aggregate scheduled revenue net cash flow (NCF) approximately $40.5 million from $36.9 million at issuance. Fitch adjusted the issuer cash flow for tenant, technology type, term of contract and corresponding expenses. As a result of the increase in NCF, the Fitch stressed debt service coverage ratio (DSCR) increased to 2.33x from 2.03x at issuance. Tenant concentrations have remained stable, and the majority of revenue is from telephony tenants, which have more stable income characteristics than other tenant types due to the strong end-use customer demand for wireless services.

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 pool net cash flow and debt service coverage ratios. The ratings have been capped at 'Asf' in light of the specialized nature of the collateral and the potential for changes in technology to affect long-term demand for wireless tower space.

The notes are secured primarily by mortgages on the interests of the asset entities in wireless sites from purchased leasehold interests and a perfected security interest in loan assets. A declining percentage of the notes are secured by payment obligations guaranteed by AT&T Inc. (AT&T Receivables) which is rated 'A' by Fitch and is on Rating Watch Negative. No action is expected on this transaction from any potential rating change as the proceeds derived from the receivables are expected to burn off. In addition, the transaction is structured with scheduled monthly principal payments that will amortize the principal balance 34% by the rapid amortization date (RAD) in 2017, reducing the refinance risk.

Crown Castle, rated 'BB' with a Stable Outlook by Fitch as of April 2014, replaced Wireless Capital Partners (WCP) as manager after purchasing and assuming the debt on the ground lease related assets of WCP in 2012.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'Criteria for Analyzing U.S. Wireless Tower Transactions' (Dec. 12, 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=754389

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=870194

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Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto
Director
+1-212-908-9173
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto
Director
+1-212-908-9173
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com