Moody's cuts SBA liquidity

Moody's Investors Service said it lowered SBA Communications Corp.'s speculative-grade liquidity rating to SGL-2 from SGL-1.

The SGL downgrade reflects the company's diminished liquidity profile and is largely due to the expectations that the company's tower acquisitions, capital expenditures and international expansion over the next 12 to 15 months will lead to a greater utilization of the company's revolving credit facility, the agency said.

Moody's said it recognizes that the planned expenditures are largely discretionary in nature and does not anticipate the company's liquidity to be strained in the near term.

SBA's Ba3 corporate family rating reflects the company's high debt load and leverage relative to peers, which is due in large part to debt-financed acquisitions, capital expenditures and increasing stock buy-backs, the agency added.

The ratings consider the company's scale as well as the stability of much of its revenues and cash flow generation, Moody's said.

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