Fitch Ratings has affirmed the GTP 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.
The affirmations are due to the stable performance of the collateral since issuance.
The certificates represent beneficial ownership interest in the trust, primary assets of which are 1,351 wireless communication sites securing one fixed-rate loan. As of the May 2010 distribution date, the aggregate principal balance of the notes remains unchanged at $250 million since issuance. The notes are interest only for the entire five year period.
As part of its review, Fitch analyzed the financial and site information provided by the master servicer, Midland Loan Services. As of March 31, 2011, aggregate annualized run rate revenue increased 13.3% from issuance to $36.86 million. The Fitch stressed DSCR increased from 1.25 times (x) at issuance to 1.34x as a result of the increase in net cash flow.
Fitch also made assumptions on the potential churn related to the AT&T and T-Mobile merger. A stress was applied to sites which include both AT&T and T-Mobile leases and an additional stress to the remaining T-Mobile sites. The stress included cashflow declines based on assumptions that certain T-Mobile leases would not renew; however, Fitch maintains a Stable Outlook due to the increase in cashflow which offsets any of the potential declines.
The tenant type concentration is stable. As of March 31, 2011, total revenue contributed by telephony tenants was 92.3% compared to 91.4% at issuance.
Additional information on Fitch's amended criteria for analyzing U.S. Wireless Tower Transactions is available in the Dec. 7, 2010 report, 'Criteria for Analyzing U.S. Wireless Tower Transactions,' which is available at 'www.fitchratings.com' under the following headers:
Structured Finance then CMBS then Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 16, 2010);
--'Criteria for Analyzing U.S. Wireless Tower Transactions (Dec. 7, 2010);
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (Sept. 27, 2010);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Nov. 17, 2010).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
Wireless Tower Industry
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=126600
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=560805
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=574208
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