Moody’s cuts SBA, rates revolver B1

Moody's Investors Service said it assigned a B1 rating to SBA Communications Corp.’s $1 billion revolving credit facility maturing 2020, which resides at SBA Senior Finance II, LLC.

The agency also downgraded SBA Communications’ existing senior secured debt, which includes the $176 million outstanding senior secured term loan A due 2017 and $1.5 billion senior secured incremental term loan B due 2021, by one notch to B1.

As part of this rating action, Moody's affirmed SBA Communications’ B1 corporate family rating, B1-PD probability of default rating, the B3 rating on its senior notes and the SGL-1 speculative grade liquidity rating.

The rating is stable.

Moody's said it adjusted the ratings on the existing senior secured debt by lowering them one notch to B1 to reflect higher loss absorption under Moody's Loss Given Default methodology resulting from the insertion of more secured obligations in the capital structure. With $1.54 billion of securitized debt raised in October 2014 combined with the current revolver upsizing, SBA Communications has meaningfully increased the proportion of secured debt to unsecured debt.

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