DBRS Morningstar Confirms Ratings on Vertical Bridge Secured Tower Revenue Notes, Series 2018-2 and Series 2020-2

DBRS, Inc. (DBRS Morningstar) confirmed its ratings on all notes issued by Vertical Bridge Secured Tower Revenue Notes Series 2018-2 and Vertical Bridge Secured Tower Revenue Notes Series 2020-2.

The rating confirmations are based on the following analytical considerations:

-- The transaction assumptions consider DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios For Rated Sovereigns: June 2022 Update,” published on June 29, 2022. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020.

-- The structural features of the transactions, such as the cash trap mechanism and amortization period triggers, which will help to accelerate the paydown of the note balances if the business environment deteriorates.

-- Evidence of stable cash flows since deal inception, with consistent annualized run rate revenue and annualized run rate net cash flow generation over time. The debt service coverage ratio has also remained stable over time with ample cushion against cash trapping and amortization period triggers.

-- The transaction parties’ capabilities with regard to origination, underwriting, and servicing.

-- The mission-critical nature of the assets, which is vital to the continuity of each tenant’s operations as well as to the overall daily functioning of the general economy through media, telecommunications, technology, and data transmission.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no environmental, social, and governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is U.S. ABS General Ratings Methodology (December 12, 2018), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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