The ratings on American Tower Corp. reflect the promising prospects of its wireless tower leasing business, which Standard & Poor's Ratings Services expects will generate increasingly stronger levels of net free cash flow after capital expenditures. Despite these very favorable business risk characteristics, which are supportive of American Tower's investment-grade business risk profile, the company's aggressive financial policy constrains the ratings. The company currently has board authorization to repurchase up to $1.5 billion of its common shares, of which it had purchased about $213 million through 2009. While management targets a leverage ratio of 3x-5x range (or about the 4x-6x area on an operating lease-adjusted basis), we believe that the company is not likely to consistently operate at the low...
Companies mentioned in this report are: American Tower Corp.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >