OREANDA-NEWS. August 17, 2015.  Fitch Ratings affirms InSite Wireless Group, LLC's secured cellular site revenue notes, series 2013-1 as follows:

--\\$123.9 million 2013-1 class A at 'BBBsf'; Outlook Stable;
--\\$39.6 million 2013-1 class B at 'BB-sf'; Outlook Stable.

Fitch does not rate the \\$14 million 2013-1 class C notes.

KEY RATING DRIVERS

The affirmations are the result of the cash flow growth since issuance due to the following: contractual rent bumps; additional leases; and acquisition of additional tower sites (with associated tenant leases) via the site acquisition account (prefunding). The issuer reported net cash flow (NCF) at issuance was \\$17.3 million, before taking into account site acquisitions. As of the August 2015 remittance, the reported NCF was \\$24.5 million, which includes cash flow from the acquired sites.

As part of Fitch's analysis, Fitch received a June 2015 data file with site and tenant information. As of the June data file, there were 632 sites with over 1,570 tenant leases. Telephony/broadband tenants represented over 70% of the annualized run rate revenue (ARRR). Fitch modeled similar assumptions regarding the pool as at issuance. This resulted in a haircut of approximately 10.7% to the issuer NCF.

The collateral pool contains 16 distributed antennae system (DAS) networks representing 12.4% of the ARRR. Similar to issuance, Fitch did not give credit the sites where InSite has a management contract to manage a DAS network owned by the DAS venue. Fitch limited modeled proceeds from the DAS networks to the 'BBsf' category (i.e. applied a 'BBsf' rating cap), based on the uncertainty surrounding the licensing agreements in a venue-bankruptcy scenario and the limited history of these networks.

RATING SENSITIVITIES

The class ratings are expected to remain stable based on expected cash flow growth due to annual rent escalations, tenant renewals and acquired sites during the site acquisition period. The ratings have been capped at 'BBBsf' due to the total leverage of the pool. Additionally, the possibility for upgrades is limited due to the allowance for additional notes, the specialized nature of the collateral and the potential for changes in technology to affect long-term demand for wireless tower space.

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