Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's assigns provisional ratings to Senior Secured Tower Revenue Notes sponsored by cell tower operator Crown Castle

30 Jul 2010

$1.55 billion of asset-backed securities rated.

New York, July 30, 2010 -- Moody's Investors Service (Moody's) has assigned the provisional rating of (P)A2 to the Senior Secured Tower Revenue Notes to be issued by Crown Castle Towers LLC (Issuer), an indirect wholly owned subsidiary of Crown Castle International Corp (CCI, Ba2 corporate family rating). Moody's also stated that its ratings on the existing series of notes previously issued by the Issuer are not expected to be downgraded or withdrawn solely as a result of this prospective issuance.

The complete rating action is as follows:

Issuer Entity: Crown Castle Towers LLC

$250,000,000 Class C-2015 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-4, rated (P)A2

$300,000,000 Class C-2017 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-5, rated (P)A2

$1,000,000,000 Class C-2020 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-6, rated (P)A2

The prospective issuance of the Offered Notes will complete the change in the maturity profile of the notes, that was started by the issuance of the Outstanding Series 2010. Following the issuance of the Offered Notes, the inability to refinance a series of notes on its respective Anticipated Repayment Date (ARD) will result in the pay down via 'turbo' of that series of notes, but will not trigger an early amortization of other series of notes which are yet to reach their respective ARD. The reduced linkage between series will enhance the stability of Issuer's capital structure which is in turn will provide greater stability to the sponsor. We view that as a modest credit positive for the Notes.

RATINGS RATIONALE AND KEY CREDIT RISKS

The $1,550,000,000 Offered Notes will rank pari-passu with Series 2010-1, -2 & -3 notes issued in January 2010 (the Outstanding Series 2010, and together with the Offered Notes, the Notes). The collateral for the Notes consist of 11,744 towers on sites that are owned, leased, subleased or managed by twelve assets entities which are subsidiaries of the Issuer. As of April 2010 this tower pool had an annualized run rate net cash flow of approximately $587 million.

The provisional ratings of the Offered Notes are derived from an assessment of the present value of the net cash flow that the tower pool is anticipated to generate from space licenses (leases) on the towers, compared to the cumulative debt being issued at each rating category.

The primary risks for the value of the tower pool are wireless technology risk and tower re-leasing risk. Technology risk relates primarily to the potential emergence of competing technologies that could obviate the need for wireless towers and adversely affect future lease revenues. We are not aware of competing technologies which could materially displace towers and believe that the tower infrastructure is becoming increasingly entrenched as demand for wireless applications grows. The only viable displacement technology that is on the horizon is Distributed Antenna System (DAS), however this technology is primarily effective in densely packed urban areas where the portfolios of the wireless tower companies have limited presence.

Re-leasing risk refers to the potential for lease rates to fluctuate downward upon renewal, since the transaction is subject to renewals. This could occur due to overbuilding or due to pressure from wireless carriers should their own businesses experience significant margin compression. Due to zoning restrictions and public pressure we do not view overbuilding as a present risk. This also provides some insulation against price risk by limiting the alternatives that a wireless carrier has.

The noteholders will benefit from a pledge by the Issuer of the of the equity interests in its subsidiary special purpose entities that own the sites, as well as, in the case of approximately 58% of the pool (by annualized run rate net cash flow), a UCC security interest in the wireless towers, leases and related assets. The absence of UCC security interests in the other 42% of the pool is a weakness, as is the absence of mortgages on any portion of the collateral constituting real property interests (against which type of collateral UCC filings can be ineffective).

The principal methodology used in rating the transaction is summarized below. Other methodologies and factors that may have been considered in the process of rating this issue can also be found in the Rating Methodologies subdirectory on Moody's website. It should be noted that Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks, such as those associated with repayment on the Anticipated Repayment Date, the timing of any principal prepayments, the payment of prepayment penalties and the payment of Post-ARD Additional Interest have not been addressed and may have a significant effect on yield to investors.

RATINGS OF EXISTING SERIES UNAFFECTED

The issuer intends to use the proceeds from the issuance of the Offered Notes, together with a cash contribution, to fully retire the Series 2006-1 notes and to pay related prepayment premiums, fees and expenses. Thus, following the issuance of the Offered Notes and the repayment of the 2006-1 notes, there will be six series notes outstanding, the Outstanding Series 2010 comprise of three series on notes and the Offered Notes comprise of three series of notes. The Offered Notes will rank pari passu with the Outstanding Series 2010. Based on that, we concluded that the ratings of the Outstanding Series 2010 notes should not be affected by the issuance of the Offered Notes.

MOODY'S V-SCORE AND PARAMETER SENSITIVITIES

V Score - The V Score for this transaction is Medium or Average. The V Score indicates "Average" structure complexity and uncertainty about critical assumptions. The Medium or average score for this transaction is driven by the Medium score for historical sector and issuer performance and data and Medium transaction governance. The Medium for historical performance and data for the sector as whole and Crown Castle in particular is attributed to the fact that the data dates back only fifteen years or so, while securitization data go back only about five years. The Medium for transaction governance is mainly due to the a weaker legal protection to bondholders compare to other U.S. Wireless Towers securitizations; the Offered Notes will be protected only through UCC filing on the assets and pledge of the equity of the SPEs, and will not benefit from mortgages on the tower sites and/or the towers.

Moody's Parameter Sensitivities -- In the ratings analysis we use various assumptions to assess the present value of the net cash flow that the tower pool is anticipated to generate. Based on these cash flows, the quality of the collateral and the transaction's structure, the total amount of debt that can be issued at a given rating level is determined. Hence, a material change in the assessed net present value could result in a change in the ratings. Therefore we focus on the sensitivity to this variable in the parameter sensitivity analysis. Specifically, if the net cash flows that the tower pool is anticipated to generate is reduced by 5%, 10% and 15% compared to the net cash flows used in determining the initial rating, the potential model-indicated ratings for the Offered Notes would change from (P)A2 to (P)Baa1, (P)Baa3, and (P)Ba1, respectively.

Parameter Sensitivities are not intended to measure how the rating of the security might migrate over time, rather they are designed to provide a quantitative calculation of how the initial rating might change if key input parameters used in the initial rating process differed. The analysis assumes that the transaction has not aged. Furthermore, parameter Sensitivities only reflects the ratings impact of each scenario from a quantitative/model-indicated standpoint. Qualitative factors are also taken into consideration in the ratings process, so the actual ratings that would be assigned in each case could vary from the information presented in the Parameter Sensitivity analysis.

PRINCIPAL METHODOLOGY

The principal methodology used in rating the Crown Castle Tower LLC transaction was "Moody's Approach to Rating Wireless Towers-Backed Securitizations: A Path to Clear Reception in the ABS Market", published in September 2005 and available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website.

As described therein, we derive an asset value for the collateral which in turn is compared to the proposed bond issuance amounts. In deriving the value of the assets, Moody's viewed the historical operating performance of CCI, the historical performance of securitized pool, evaluated and analyzed comparable public company data and market information from various third party sources.

The following are the key assumptions used in the quantitative analysis: (i) Revenue Growth -- for wireless voice/data two sources of revenue growth were assumed: first, lease escalators which were based on the tenants' contractual obligations were assumed to be fixed at 2.6% for the first five years and 2.8% thereafter; second, organic growth that resulted in the addition of approximately 0.2 tenant per tower in total over a period of six years. Revenues from broadcasting were assumed to decline on a continuous basis over a 15 year period to a third of current levels, and data/other revenues were assumed to decline to zero based on a triangular distribution ranging from five to ten years. (ii) Operating Expenses -- were assumed to vary such that net tower cash flow margins ranged from 65% to 78% based on a triangular distribution. (iii) Maintenance Capital Expenditures - were assumed to be $650 per tower per annum, and to increase by 2% to 4% every year. (iv) Tenants' Probability of Default (wireless voice/data tenants) - Moody's "Idealized" default rate table was applied, using the actual ratings of the Tenants who were rated and assuming near-default ratings for others; (v) Recovery Upon Wireless Tenant Default -- were assumed to be zero the year following the default and recover to 80% for large carriers and 30% to 60% for small carriers of pre-default revenues over the next two years; (vi) Discount Rate - the discount rate applied to the net cash flow was assumed to vary between 10.00% and 13.00%; (vii) Finally, adjustments were made to the total amount of debt that can be issued down to the requested rating level based on the structure of the transaction. In particular, all the notes are ranked pari-passu and account for a larger percentage of the total debt outstanding compared to most similarly rated classes in the prior transactions; therefore the Notes, including the Offered Notes, have lower severity of loss risk. As a result, Moody's was comfortable with a somewhat larger individual class size than would otherwise have been the case.

Based on Moody's assessed asset value the Notes have a loan-to-value (LTV) ratio of approximately 63%. The LTV ratio reflects the LTV ratio of the combined amounts of the Offered Notes and the 2010 Outstanding Series.

ADDITIONAL RESEARCH

Additional research for this transaction is available at www.moodys.com. The special report "Updated Report on V Scores and Parameter Sensitivities for Structured Finance Securities" is also available on www.moodys.com.

New York
Michael McDermitt
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Giyora Eiger
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's assigns provisional ratings to Senior Secured Tower Revenue Notes sponsored by cell tower operator Crown Castle
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.