S&P rates American Tower notes CCC

Standard & Poor's said it assigned its CCC rating to the $225 million 7.5% senior notes due 2012 issued by Boston-based wireless tower operator American Tower Corp.

Simultaneously, S&P affirmed its existing ratings on American Tower Corp., including the B- corporate credit rating and CCC senior unsecured debt rating.

The outlook remains positive.

Proceeds from the 7.5% notes will be used to refinance the company's 6.5% convertible notes due 2009 and thereby eliminate the possibility of these notes to be put to the company in late 2006.

S&P said the ratings reflect significant financial risk associated with American Tower's high leverage, which stemmed from its aggressive debt-financed tower acquisition activities during the 1999-2001 time frame.

Somewhat mitigating American Tower's aggressive financial risk profile are several favorable characteristics of the tower leasing business, the company's modest free cash flow prospects, and management's demonstrated commitment to reduce debt.

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