|[April 10, 2014]
Fitch Affirms GTP Towers Issuer, LLC Secured Tower Revenue Notes, Global Tower Series 2010-1
CHICAGO --(Business Wire)--
Fitch Ratings has affirmed Global Tower Issuer, LLC commercial mortgage
pass-through certificates, series 2010-1 as follows:
--$200,000,000 class C at 'A-sf'; Outlook Stable;
--$50,000,000 class F at 'BB-sf'; Outlook Stable.
KEY RATING DRIVERS
The affirmations are due to 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.
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 1,195 wireless communication sites securing
one fixed-rate loan. As of the March 2014 distribution date, the
aggregate principal balance of the notes remains unchanged at $250
million since issuance. The notes are interest only until Feb. 15, 2015,
the anticipated repayment date.
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 2014 remittance, aggregate annualized run rate net cash
flow increased 47.1% since issuance to $47.9 million. The Fitch stressed
DSCR increased from 1.25x at issuance to 1.88x as a result of the
increase in net cash flow.
The technology type concentration is stable. As of March 2014, total
revenue contributed by telephony tenants was 97.5% compared to 91.4% 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 (News - Alert) 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
As of Jan. 1, 2014, the issuer enacted a collateral substitution to
enhance collateral quality for the portfolio with 268 rooftop sites
being replaced by 106 tower sites. Pursuant to the transaction
documents, the servicer approved the substitution upon saisfaction of
the tenant quality tests and cashflow hurdles. The resultant DSCR after
substitution exceeded the DSCR immediately preceding the substitution.
Additional information on Fitch's criteria for analyzing U.S. Wireless
Tower Transactions is available in the Dec. 3, 2013 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' (May 24, 2013);
--'Criteria for Analyzing U.S. Wireless Tower Transactions' (Dec. 3,
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage
Transactions' (Sept. 20, 2013).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Criteria for Analyzing U.S. Wireless Tower Transactions
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage
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DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON (News - Alert) 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
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