Moody's gives ATP, notes Ba3

Moody's Investors Service said it gave Ba3 ratings to ATP Tower Holdings, LLC and its proposed $375 million of senior secured notes due 2026. This is the first time Moody's assigned ATP a rating.

“The Ba3 CFR considers ATP's business model that provides high cash flow visibility from long-term, non-cancelable, take-or-pay contracts containing escalators to compensate for inflation with Empresa Nacional de Telecomunicaciones SA (Baa3 stable), Telefonica SA (Baa3 stable) and America Movil, SAB de CV (A3 negative). Although these three customers represent 80% of ATP's revenues streams, this is counterbalanced by additional diversification from the fiber business expected to reach 15% of total revenues in 2021, as well as high barriers to entry and high renewal rates,” Moody’s said in a press release.

The new senior secured notes will represent the largest portion of ATP's outstanding debt aligning the notes' rating to its CFR of Ba3, the agency said.

The proposed notes will be issued by ATP Tower Holdings, Andean Tower Partners Colombia SAS, Andean Telecom Partners Peru Srl and Andean Telecom Partners Chile SpA, as co-issuers and will benefit from the guarantee of ATP Fiber Colombia SAS, Redes de Fibra del Peru Srl and ATP Fiber Chile SpA, as well as a pledge over the shares of the guarantors.

Proceeds will be used to repay debt, fund its expansion plan and general corporate purposes.

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