Fitch rates American Tower notes BBB

Fitch Ratings said it assigned a BBB rating to American Tower Corp.'s offering of $650 million of 3.375% senior unsecured notes due 2024 and $600 million of 3.95% senior unsecured notes due 2029.

The proceeds from the offering will be used to repay existing debt, including debt under its 2013 and 2014 revolving credit facilities, the agency said.

The proceeds may be temporarily invested in short-term marketable securities, Fitch added.

American Tower currently has an issuer default rating of BBB with a stable outlook.

The ratings are supported by the financial flexibility provided by strong free cash flow and high EBITDA margins, which have been consistently about 60%, Fitch said.

The wireless tower business model translates into strong, sustainable operating performance and free cash flow growth, aided by the company's significant scale and the favorable demand characteristics for wireless services, particularly data, the agency said.

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