OREANDA-NEWS. Fitch Ratings has affirmed the following rating on AP WIP Holdings, LLC's notes:

--$102.6 million notes maturing 2019 at 'BBBsf'; Outlook Stable.

KEY RATING DRIVERS

The loan is secured by: perfected first-mortgage liens on the interests of the asset entities in fee assets, ground leased assets, and other sites representing approximately 97% of the issuer net cash flow (NCF) from all such assets; and the equity interests of the issuers and each asset entity, as well as various transaction accounts and agreements. The security interests in the equity of the issuers and the asset entities provide noteholders with the ability to foreclose on the ownership of the issuers and the asset entities in addition to their assets pledged as collateral in the event of default.

As part of its review, Fitch analyzed the site and lease information provided by the master servicer, Midland Loan Services, and the issuer as of July 1, 2016. The issuer annualized NCF has increased to $13.7 million from $12.4 million at issuance attributed to the addition of lease assets during the prefunding period and contractual rent bumps. Fitch's NCF was approximately 4% below the issuer's, implying a Fitch stressed debt service coverage ratio (DSCR) of 1.38x including all potential future prefunding. The debt multiple relative to Fitch's NCF for the loan is 7.64x, which equates to a debt yield of 13.1%.

Total revenue contributed by telephony tenants remained steady, comprising approximately 99.6% of the issuer NCF. Lease revenue from telephony tenants has more stable income characteristics than other technology types due to the strong end-use customer demand for wireless services. AT&T (rated 'A-'/Outlook Stable) and Verizon (rated 'A-'/Outlook Stable), the largest domestic wireless service providers, represent approximately 25.7% of issuer cash flow. The largest state concentration is California at 21.1% of issuer cash flow.

RATING SENSITIVITIES

The Rating Outlook remains Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.