Moody’s upgrades SBA debt to B2

Moody's Investors Service said it upgraded SBA Communications Corp.’s senior unsecured ratings to B2 from B3 and affirmed its B1 corporate family rating, along with the B1 senior secured ratings of subsidiary SBA Senior Finance II, LLC.

The outlook is stable.

Concurrently, the agency withdrew the REIT's speculative grade liquidity rating, probability of default rating and loss given default assessments because these ratings do not apply under Moody's methodology for rating commercial property REITs.

Moody’s said the upgrade of the senior unsecured debt reflects the gradual shift in SBA’s capital structure that in a distress case scenario would result in a lower loss absorption by the unsecured debt obligations.

The one-notch upgrade also reflects the agency’s approach to the notching differential for senior unsecured obligations of REITs with a largely secured capital structure.

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