Fitch Affirms GTP Acquisition Partners I, LLC Secured Tower Rev Notes, Series 2011-2 and 2013-1

CHICAGO--()--Fitch Ratings has affirmed GTP Acquisition Partners I, LLC Secured Tower Revenue Notes, Global Tower Series 2011-2C, 2011-2F, 2013-1C, and 2013-1F as follows:

--$490,000,000 class 2011-2C at 'Asf'; Outlook Stable;

--$155,000,000 class 2011-2F at 'BB-sf'; Outlook Stable;

--$190,000,000 class 2013-1C at 'Asf'; Outlook Stable;

--$55,000,000 class 2013-1F at 'BB-sf'; Outlook Stable.

KEY RATING DRIVERS

The affirmations are the result of 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.

All of the notes are backed by mortgages representing more than 93% of the annualized run rate net cash flow (NCF) and guaranteed by the direct parent of the borrowers. Those guarantees are secured by a pledge and first-priority-perfected security interest in 100% of the equity interest of the borrowers (which own, lease or manage 2,713 wireless communication sites) and of the direct parent, respectively.

The non-rated 2011-1C class with a balance of $70 million has the same rating and is pari passu with classes 2011-2C and 2013-1C. Additionally, 2011-2F and 2013-1F have the same rating and are pari passu in terms of losses with each other.

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 2015 remittance, aggregate annualized run rate net cash flow increased 10.2% since 2013 to $127.6 million. The Fitch stressed debt service coverage ratio (DSCR) increased from 1.26x at issuance to 1.36x as a result of the increase in net cash flow.

The technology type concentration is stable. As of March 2015, total revenue contributed by telephony tenants was 96.6%, which is an increase from 90.6% 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.

Additional information on Fitch's criteria for analyzing U.S. Wireless Tower Transactions is available in the March 27, 2015 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' (Mar. 31, 2015);

--'Criteria for Analyzing U.S. Wireless Tower Transactions' (Mar. 27, 2015);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Mar. 20, 2015)

Applicable Criteria and Related Research:

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862818

Criteria for Analyzing U.S. Wireless Tower Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863223

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983024

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
David Ro, +1-312-368-3132
Director
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson, +1-312-606-2341
Senior Director
or
Media Relations
Sandro Scenga, New York, +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
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson, +1-312-606-2341
Senior Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com