Fitch Upgrades Crown Castle Senior Secured Certificates Series 2009-1

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

KEY RATING DRIVERS

The upgrades are due to the strong performance of the collateral coupled with substantial de-levering of the transaction since issuance.

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 March 2016 distribution date, the aggregate principal balance has been paid down by 43.3% to $141.8 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 March 2016 remittance, aggregate TTM net cash flow increased 32% since issuance to $56.5 million. The total debt-to-issuer net cash flow multiple decreased to 2.85x from 5.84x at issuance due to amortization and growth in net cash flow.

The technology type concentration is stable. As of March 2016, total revenue contributed by telephony tenants was 91.4% 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.

RATING SENSITIVITIES

The Outlooks on all classes are expected to remain Stable. Downgrades are unlikely due to continued cash flow growth from annual rent escalations and automatic renewal clauses resulting in higher debt service coverage ratios (DSCR) since issuance. The ratings have been capped at 'A' and further upgrades are unlikely due to the specialized nature of the collateral and the potential for changes in technology to affect long-term demand for wireless tower space.

DUE DILIGENCE USAGE

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

Fitch has upgraded the following ratings:

--$66,783,870 class A-1 to 'Asf' from 'A-sf'; Outlook Stable;

--$75,000,000 class A-2 to 'Asf' from 'A-sf'; Outlook Stable.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Analyzing U.S. Wireless Tower Transactions (pub. 19 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873961

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

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1001837

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1001837

Endorsement Policy

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

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160331006467/en/

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, New York, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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