Fitch Affirms AP WIP Holdings, LLC Notes Maturing 2019

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed the following rating on AP WIP Holdings, LLC notes:

--$115 million notes maturing 2019 at 'BBBsf'; Outlook Stable.

KEY RATING DRIVERS

The loan is secured by: perfected first mortgage liens on the interests of the asset entities in fee assets, ground leased assets, and other sites representing approximately 96.9% of the issuer net cash flow (NCF) from all such assets; and the equity interests of the issuers and each asset entity, as well as various transaction accounts and agreements. The security interests in the equity of the issuers and the asset entities provide noteholders with the ability to foreclose on the ownership of the issuers and the asset entities in addition to their assets pledged as collateral in the event of default.

As part of its review, Fitch analyzed the collateral data and site information provided by the master servicer, Midland Loan Services, and the issuer as of June 2015. The issuer annualized NCF has increased to $13.02 million from $12.4 million at issuance attributed to the addition of lease assets during the prefunding period and contractual rent bumps. The portfolio has a weighted average annual escalator of approximately 3.06%.

Total revenue contributed by telephony tenants remained steady, comprising approximately 99.6% of the issuer NCF. 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.

RATING SENSITIVITIES

The Rating Outlook remains Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Analyzing U.S. Wireless Tower Transactions (pub. 27 Mar 2015)

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

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

AP WIP Holdings, LLC maturing 2019 - Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754056

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=989258

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989258

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150810005954/en/

Fitch Ratings
Primary Analyst
Jeffrey Diliberto, +1-312-368-3268
Director
Fitch Ratings, Inc.
70 West Madison Street
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
[email protected]

Source: Fitch Ratings

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