NEW YORK—Moody’s Investors Service down graded both SpectraSite Holdings Inc. and Pinnacle Holdings Inc.
Moody’s said it took the action because Pinnacle is unable to get longer-term covenant relief from its bank group, it severely lacks liquidity and its tenant base is eroding.
In SpectraSite’s case, Moody’s said despite the company’s actions to improve its near-term liquidity, SpectraSite remains overlevered and may not be able to increase cash flow quickly enough to grow into its capital structure.
Pinnacle’s senior discount notes are now rated Caa2 from B2, and SpectraSite’s senior discount notes are rated Caa1 from B2.
