Fitch Affirms Crown Castle Senior Secured Certificates, Series 2009-1

CHICAGO--()--Fitch Ratings has affirmed the Crown Castle Senior Secured commercial mortgage pass-through certificates, series 2009-1, issued by Pinnacle Towers Acquisition Holdings LLC, as follows:

--$86,014,434 class A-1 at 'A-sf'; Outlook Stable;

--$75,000,000 class A-2 at 'A-sf'; Outlook Stable.

KEY RATING DRIVERS

The affirmations are due to the stable performance of the collateral since issuance with continued cash flow growth and amortization of the notes. 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 1,156 wireless communication sites securing one fixed-rate loan. As of the February 2015 distribution date, the aggregate principal balance has been paid down by 35.6% to $161 million from $250 million since issuance. The class A-1 note received interest beginning in September 2009 and has scheduled principal amortization from January 2010 to August 2019. The class A-2 note is interest-only for the first 10 years and receives scheduled principal amortization during years 11 through 20, beginning September 2019. The classes are pro rata with regard to losses.

As part of its review, Fitch analyzed the collateral data and site information provided by the master servicer, Midland Loan Services. As of the February 2015 remittance, aggregate TTM net cash flow increased 27.2% since issuance to $54.5 million. The total debt-to-issuer net cash flow multiple decreased to 2.95x from 5.84x at issuance due to amortization and growth in net cash flow.

The technology type concentration is stable. As of February 2015, total revenue contributed by telephony tenants was 90.6% compared to 82.9% at issuance. Lease revenue from telephony tenants has more stable income characteristics than other technology 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 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' (March 31, 2015);

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

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

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Criteria for Analyzing U.S. Wireless Tower Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863223

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862818

Additional Disclosure

Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983035

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, New York
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
Chicago, IL 60602
or
Committee Chairperson
Britt Johnson, +1-312-606-2341
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com