Fitch downgrades ATP Tower

Fitch Ratings said it downgraded ATP Tower Holdings, LLC's long-term foreign currency issuer default rating to BB from BB+.

The outlook is stable.

“The downgrade reflects Fitch's expectations that ATP's capital structure will be more leveraged than initially anticipated,” Fitch said in a news release.

Fitch expects ATP's net leverage, calculated under Fitch's criteria, will be in the range of 6.5x-7.5x over the medium term, which is higher than the 6.0x-7.0x expected for a BB+ rating. The downgrade also reflects increasing competition in Latin America and tighter funding conditions that will result in higher-than-expected interest rates of new debt and weaker free cash flow generation, the agency added.

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