Fitch rates American Tower notes BBB

Fitch Ratings said it assigned a BBB rating to American Tower Corp.’s offering of senior unsecured euro notes due 2026.

Net proceeds will be used to repay existing debt, including debt under its 2013 revolving credit facility. Proceeds may also be used for general corporate purposes.

As of March 31, pro-forma outstanding borrowings on American Tower’s revolvers totaled about $2.4 billion. The pro-forma amount reflects borrowing of roughly $749 million on its 2013 revolver, and repayment of $600 million on its 2014 revolver subsequent to the end of the first quarter of 2018.

The company’s issuer default rating is BBB with a stable outlook.

Fitch said the ratings are supported by the financial flexibility provided by American Tower’s strong FCF and its high EBITDA margin, which has been consistently around 60% in recent years.

The tower business model translates into strong, sustainable operating performance and FCF growth, aided by the company's significant scale and the favorable demand characteristics for wireless services (particularly data), the agency explained.

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