S&P lowers TowerCo

Standard & Poor's said it lowered the corporate credit rating on TowerCo II Holdings LLC to B from B+ and its proposed senior secured credit facilities to BB- from BB. The 1 recovery rating indicates expectation for 90% to 100% recovery.

The outlook is stable.

"The downgrade is due to the even more aggressive financial policy than we had previously incorporated into the rating," S&P analyst Naveen Sarma said in a statement.

The company plans to enlarge its proposed credit facility by $50 million to $440 million. With the increase to the facility, pro forma adjusted leverage would rise to a debt-to-EBITDA ratio of 10x based on estimated 2010 results, according to the agency.

This high leverage overshadows the company's satisfactory business risk profile as the fifth-largest independent tower operator in the United States, the agency said.

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