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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.

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Announcement:

Moody's places wireless tower-backed securitizations on review for possible upgrade

03 Feb 2011

Approximately $6.17 billion of securities affected

New York, February 03, 2011 -- Moody's Investors Service has placed on review for possible upgrade wireless tower-backed securitizations sponsored by American Tower Corporation (ATC), Global Tower Partners (AGT), Crown Castle International Corp (CCI), and SBA communications Corporation (SBA). The review was prompted by Moody's view that key fundamental credit risks of cell towers have materially diminished over the last several years. Specifically, three factors drive this change of view: lack of disruptive competing wireless technologies, increased barriers to construction of new towers, and significantly deeper and broader penetration of wireless communications into everyday life.

Moody's review of the securitizations will include a reassessment of the value of the towers underlying each transaction and a recalculation of the cumulative loan-to-value (CLTV) of each tranche in these transactions. Our rating methodology for wireless tower-backed securitizations has been revised to reflect our updated view on the sector.

Technology and Re-Leasing Risks Diminished

Moody's believes that investors' exposure to technology and re-leasing risk in wireless tower securitizations has declined markedly over the past several years. Competing technologies are unlikely to materially displace cell towers and stricter zoning rules and increased public pressure made it more difficult to construct new towers. As a result, the real estate values of existing towers are enhanced and the alternatives available to wireless carriers are limited.

Growing Ubiquity of Tower Based Wireless Usage Continues

In the past five years the wireless tower industry has experienced strong growth, as wireless usage has became woven into the fabric of life in the U.S., and is expected to continue to grow in the future. Initially, the growth was mainly driven by the increase in wireless penetration in the U.S; from less than 70% in 2005 to nearly 90% at the end of 2009 (as noted in Moody's "Annual Outlook for the Wireless-Telecom Industries in the U.S. and Canada Smartphones Jump-Start Growth in 2010-11," published on August 31, 2010). Recently, the growth was powered by the increase in demand for smart phones, and the introduction of new wireless devices, mainly tablets. As a result, current total wireless connections in the U.S. is about 95% with approximately 290 million subscribers. In the next few years the enhancement of the carriers' 3G networks and the roll out of 4G networks are expected to generate new demand for cell towers infrastructure, and in turn support additional growth in the cell tower industry.

Ratings Rationale

The ratings of wireless tower-backed securitizations are based on an assessment of the present value of the net cash flow that each tower pool is anticipated to generate from space licenses (leases) on the towers, compared to the cumulative debt issued at each rating category. In deriving the assessed value, we use triangular distributions for discount rates. When we originally rated the transactions being placed on review today the distributions were anchored between 10% and 13% (we typically used 10% minimum, 11% mean and 13% max). As a result of the diminishment of the fundamental credit and business risks detailed, Moody's has lowered the discount rates so that the triangular distributions are now anchored between 8.5% and 13%, with typical distribution of 8.5% minimum, 10.0% mean and 13,0% maximum. Such change will likely increase Moody's assessed value of each tower pool in the transactions under review, and therefore reduce the CLTV of each of the tranches. A lower CLTV may result in higher ratings.

The principal methodology used in these rating was "Moody's Approach to Rating Wireless Towers-Backed Securitizations: A Path to Clear Reception in the ABS Market", published in September 2005, and amended on February 3, 2011 to reflect the change in discount rates noted above.

In addition, Moody's publishes a weekly summary of structured finance credit, ratings, and methodologies available to all registered users of our website at www.moodys.com/SFQuickCheck.

The complete list of affected transactions is as follows:

Issuer: American Tower Trust I

Issue: Commercial Mortgage Pass-Through Certificates, Series 2007-1

$215,000,000, Class B Certificates, Aa2 (sf) Placed Under Review for Possible Upgrade; previously on May 10, 2007 assigned Aa2 (sf)

$110,000,000, Class C Certificates, A2 (sf) Placed Under Review for Possible Upgrade; previously on May 10, 2007 assigned A2 (sf)

$275,000,000, Class D Certificates, Baa2 (sf) Placed Under Review for Possible Upgrade; previously on May 10, 2007 assigned Baa2 (sf)

$55,000,000, Class E Certificates, Baa3 (sf) Placed Under Review for Possible Upgrade; previously on May 10, 2007 assigned Baa3 (sf)

$73,000,000, Class F Certificates, Baa2 (sf) Placed Under Review for Possible Upgrade; previously on May 10, 2007 assigned Baa3 (sf)

Issuer: GTP Acquisition Partners I, LLC

Issue: Mortgage-Backed Notes, Global Tower Series 2007-1

$45,200,000, Class B Notes, Aa2 (sf) Placed Under Review for Possible Upgrade; previously on May 31, 2007 assigned Aa2 (sf)

$45,200,000, Class C Notes, A2 (sf) Placed Under Review for Possible Upgrade; previously on May 31, 2007 assigned A2 (sf)

$45,200,000, Class D Notes, Baa2 (sf) Placed Under Review for Possible Upgrade; previously on May 31, 2007 assigned Baa2 (sf)

$16,950,000, Class E Notes, Baa3 (sf) Placed Under Review for Possible Upgrade; previously on May 31, 2007 assigned Baa3 (sf)

$56,500,000, Class F Notes, Ba2 (sf) Placed Under Review for Possible Upgrade; previously on May 31, 2007 assigned Ba2 (sf)

$73,450,000, Class F Notes, B2 (sf) Placed Under Review for Possible Upgrade; previously on May 31, 2007 assigned B2 (sf)

Issuer Entity: GTP Towers Issuer, LLC

Issue: Secured Tower Revenue Notes, Global Tower Series 2010-1

$200,000,000 Class C, A2 (sf) Placed Under Review for Possible Upgrade; previously on February 19, 2010 assigned A2 (sf)

$50,000,000 Class F, Ba2 (sf) Placed Under Review for Possible Upgrade; previously on February 19, 2010 assigned Ba2 (sf),

Issuer Entity: Crown Castle Towers LLC

$300,000,000 Class C-2015 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-1, A2 (sf) Placed Under Review for Possible Upgrade; previously on Jan 15, 2010 assigned A2 (sf)

$350,000,000 Class C-2017 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-2, A2 (sf) Placed Under Review for Possible Upgrade; previously on Jan 15, 2010 assigned A2 (sf)

$1,250,000,000 Class C-2020 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-3, A2 (sf) Placed Under Review for Possible Upgrade; previously on Jan 15, 2010 assigned A2 (sf)

$250,000,000 Class C-2015 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-4, A2 (sf) Placed Under Review for Possible Upgrade; previously on August 18, 2010 assigned A2 (sf)

$300,000,000 Class C-2017 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-5, A2 (sf) Placed Under Review for Possible Upgrade; previously on August 18, 2010 assigned A2 (sf)

$1,000,000,000 Class C-2020 Fixed Rate Senior Secured Tower Revenue Notes, Series 2010-6, A2 (sf) Placed Under Review for Possible Upgrade; previously on August 18, 2010 assigned A2 (sf)

Issuer Entity: Pinnacle Towers Acquisition Holdings LLC (an indirect wholly owned subsidiary of Crown Castle International Corp)

Issue: Senior Secured Notes, Series 2009-1

$161,857,140 Class A-1, A2 (sf) Placed Under Review for Possible Upgrade; previously on August 3, 2009 assigned A2 (sf)

$75,000,000 Class A-2, A3 (sf) Placed Under Review for Possible Upgrade; previously on August 3, 2009 assigned A3 (sf)

Issuer: SBA Tower Trust

$680,000,000, Secured Tower Revenue Securities, Series 2010-1 Class C, A2 (sf) Placed Under Review for Possible Upgrade; previously on April 27, 2010 assigned A2 (sf)

$550,000,000, Secured Tower Revenue Securities, Series 2010-2 Class C, A2 (sf) Placed Under Review for Possible Upgrade; previously on April 27, 2010 assigned A2 (sf)

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 Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's places wireless tower-backed securitizations on review for possible upgrade
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