Moody's cuts Crown Castle to SGL-2

Moody's Investors Service said it lowered Crown Castle Operating Co.'s speculative-grade liquidity rating to SGL-2 from SGL-1 and affirmed the company's other ratings, including its Ba3 corporate family and probability-of-default ratings and its Ba3 (LGD3, 48%) $250 million senior secured revolving credit facility due 2009 and $650 million senior secured term loan due 2014.

The agency said the downgrade of Crown Castle's liquidity rating reflects higher-than-anticipated outstandings under its revolving credit facility, which is compounded by the January 2009 maturity of this facility.

Nonetheless, the outlook continues to be stable, reflecting Moody's belief that strong cash flow growth in the context of favorable industry fundamentals over the rating horizon, offset by the likelihood that material portions of such cash flow will continue to be directed to shareholders via share buybacks, will leave Crown Castle 's risk profile largely unchanged over the near-to-medium term.

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