Fitch Ratings has affirmed the Crown Castle Senior Secured Notes, Series 2009-1 as follows:
--$163,085,000 class A-1 at 'A-'; Outlook Stable;
--$75,000,000 class A-2 at 'A-'; Outlook Stable.
The affirmations are due to the stable performance of the collateral since issuance. All classes are privately placed pursuant to rule 144A of the Securities Act of 1933.
The Rating Outlooks reflect the likely direction of ratings changes over the next one to two years. The notes are secured by first priority security interests in the equity interests of Pinnacle Towers Acquisition Holdings LLC and each of the five asset entities that own and operate the wireless communication towers.
The certificates represent beneficial ownership interest in the trust, primary assets of which are 1,163 wireless communication sites securing one fixed-rate loan. As of the June 2010 distribution date, the aggregate principal balance of the notes has decreased 4.7% since issuance. The class A-1 notes started to receive interest in September 2009 and scheduled principal amortization in January 2010. The class A-2 notes will be interest only for the first 10 years and receive scheduled principal amortization during years 11 through 20, beginning September 2019. Both notes have the ability to accrue scheduled principal amortization.
As part of its review, Fitch analyzed the financial statements of the issuer, Pinnacle Towers Acquisition Holdings LLC , as well as trustee reports provided by the servicer, Midland Loan Services. As of May 31, 2010, aggregate annualized run rate revenue increased to $43,907 million, a 3.3% increase from issuance. Over the same period, the Fitch adjusted net cash flow increased 3.3% since issuance.
The Fitch total debt to Fitch net cash flow multiple decreased to 6.19 times (x) from 6.71x at issuance as the A-1 notes have begun to amortize and net cash flow has increased.
The tenant type concentration is stable. As of May 31, 2010, total revenue contributed by telephony tenants was 87.1% compared to 87% at issuance.
Applicable criteria available on Fitch's web site at 'www.fitchratings.com': 'U.S. CMBS Wireless Tower Criteria,' dated July 6, 2007, 'Rating U.S. Single Borrower Commercial Mortgage Transactions,' dated Feb. 6, 2007, and 'Global Structured Finance Rating Criteria' dated Sept. 30, 2009.
Additional information is available at 'www.fitchratings.com'.
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