[May 15, 2013] Fitch Affirms Unison Ground Lease Funding Series 2010-1 and 2010-2 Tweet May 15, 2013 (Close-Up Media via COMTEX) -- Fitch Ratings has affirmed the Unison Ground Lease Funding Secured Cellular Site Revenue Notes, series 2010-1 and 2010-2: --$67,000,000 Series 2010-1, Class C at Asf; Outlook Stable; --$87,500,000 Series 2010-2, Class C at Asf; Outlook Stable; --$41,500,000 Series 2010-2, Class F at BBsf; Outlook Stable. Key Rating Drivers The affirmations are due to the stable performance of the collateral since issuance with no significant changes to the collateral composition. The Stable Outlooks reflect the limited prospect for upgrades given the provision to issue additional notes. Rating Sensitivities The classes are expected to remain stable based on continued cash flow growth due to annual rent escalations and automatic renewal clauses resulting in higher debt service coverage ratios since issuance. The ratings have been capped at A due to the specialized nature of the collateral and the potential for changes in technology to affect long-term demand for wireless tower space. The certificates represent beneficial ownership interest in the trust, primary assets of which are 1,393 wireless communication sites securing one fixed-rate loan. As of the March 2013 distribution date, the aggregate principal balance of the notes remains unchanged at $196 million since issuance. The notes are interest only for the entire seven-year period for Series 2010-1, Class C and ten years for classes C and F of Series 2010-2. The ownership interest in the cellular sites consists primarily of perpetual and limited long-term easements of land, rooftops, or other structures on which site space is allocated to wireless service providers and independent tower operators. Thus, unlike typical cell tower securitizations in which the towers serve as collateral, the collateral for this securitization generally consists of easements and the revenue stream from the payments the owner of the tower and/or tenants of the site pay to Unison. As part of its review, Fitch analyzed the collateral data and site information provided by the master servicer, Midland Loan Services. As of March 31, aggregate annualized run rate net cash flow increased 15.3 percent since issuance to $27.4 million. The Fitch stressed DSCR increased from 1.21x at issuance to 2.09x as a result of the increase in net cash flow. As of March 2013, the site acquisition account was fully depleted. The increase in net cash flow resulting from newly acquired sites is in-line with expectations at issuance. The portfolio of sites are composed of ground easements, rooftops and structures which represent 56 percent, 35 percent and 9 percent of revenue respectively. Site concentrations are in-line with percentages of revenue at issuance. The ownership interests in the sites consist of 78.9 percent perpetual easements and 19.9 percent limited term easements. The limited term easements are generally long term with an average remaining term in excess of 40 years. Additional information on Fitch's criteria for analyzing U.S. Wireless Tower Transactions is available in the Dec. 4, 2012 report, 'Criteria for Analyzing U.S. Wireless Tower Transactions,' which is available at 'fitchratings.com' under the following headers: Structured Finance then CMBS then Criteria Reports Additional information is available at 'fitchratings.com'. ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]