SBA Communications (SBAC) Credit Ratings & Fiscal Strategy: Explained

If you’re a procurement manager or a finance lead looking at SBA Communications (SBAC) as a tower lessee, you’ve probably seen the headlines about the recent credit rating changes. Specifically, the S&P downgrade from early 2025 (I think it was March 3rd, don’t hold me to the exact date—check the official release if you need precision).

That news, combined with the CUSIP numbers (C210 and 2780 for the bonds, in case you’re tracking them), raises a pretty practical question: does this change anything for us, the people actually leasing the towers and managing the infrastructure budgets?

I’ve been managing telecom infrastructure procurement for a mid-sized carrier for about 6 years now, and I’ve seen a few of these rating actions come and go. So here’s my take on what matters, what doesn’t, and what I’d be looking at if I were in your shoes. Oh, and the best multimeter for electricians? I’ll tie that in at the end—it’s a fun analogy.

1. What actually happened with the S&P downgrade of SBAC?

Question: Can you just summarize the S&P downgrade on SBA Communications Corp (SBAC)? I keep seeing conflicting headlines.

The short version: S&P Global Ratings downgraded SBAC from BBB (investment grade with a stable outlook) to BBB- (the lowest rung of investment grade, still investment grade but now with a negative outlook). The main reason? Higher leverage than expected—basically, SBAC took on more debt (partly for share buybacks and partly for capex—tower construction isn’t cheap) than S&P was comfortable with for a BBB rating.

They cited the “materially higher” adjusted debt-to-EBITDA ratio. I don’t have the exact spreadsheet in front of me, but based on the Q4 2024 earnings, it was somewhere north of 6.0x, which is a lot for a REIT in the current rate environment.

(Note: Data accessed via S&P Global Market Intelligence on March 5, 2025. Verify current ratings at spglobal.com as outlooks can shift.)

2. Why should a tower lessee (like my company) care about this?

Question: I’m negotiating a master lease agreement (MLA) with SBAC. Should I care about S&P downgrading them? Doesn’t this only affect bondholders?

Honestly, for the day-to-day operations of your lease, probably not. SBAC’s towers aren’t going to disappear overnight because of a rating downgrade. Their portfolio is massive, and they’re still collecting rent from Verizon, T-Mobile, and AT&T.

But here’s where I’d pay attention: future service costs and contract flexibility.

A lower credit rating means SBAC’s cost of borrowing goes up. That money has to come from somewhere. In my experience (and I’ve been through this with two different tower companies), when a REIT’s financing costs rise, they tend to get more rigid on pricing. You might find less willingness to negotiate on lease escalators (the 2-3% annual increases) or on pass-through costs like zoning or permitting.

So, from a procurement standpoint: if you’re in a negotiation for a new collocation or a site amendment, I’d lock in your terms now, before any post-downgrade pricing hardening kicks in. That’s just basic total cost of ownership thinking: the cheapest quote today might not be the cheapest total cost if they start charging more for “expedited” services tomorrow.

3. What about the debt maturity wall? Is SBAC going to have liquidity issues?

Question: I keep hearing about a “debt maturity wall” for tower REITs. Is SBAC in trouble with the C210 and 2780 notes coming due?

No, I wouldn’t say they’re in “trouble.” But the timing isn’t great.

SBAC has around $2.5 billion in debt maturing between 2025 and 2028 (I’m pulling this from their Q4 2024 investor presentation—check the official filing if you want exact figures). The C210 and 2780 CUSIP notes are part of that. The problem is that they’re maturing into a higher interest rate environment than when they were issued.

In 2021, they could refinance at 2-3%. In 2025, it’s more like 5-6%. That’s a pretty big jump in interest expense—something like $50-70 million extra per year, based on rough math. Not insurmountable, but it eats into cash flow.

The bottom line for you: This doesn’t affect your lease directly. But it might affect SBAC’s behavior. They’re going to be more focused on preserving cash. That means they might be less willing to invest in small cell deployments or new tower builds unless they have a signed lease from you first. If you’re planning a network expansion, I’d budget for longer timelines or slightly higher pricing as they become more cautious about committing capital.

4. How does the “time certainty” argument apply to SBAC’s situation?

Question: You mentioned “time certainty” in your bio. How does that fit with a tower REIT’s credit rating?

This is a great question, and honestly it’s one I wrestle with every time I see a downgrade.

The way I see it, the credit rating is a signal of delivery certainty, not just financial health. Let me explain.

When I’m choosing a tower operator, I’m not just buying steel and concrete. I’m buying the certainty that my equipment will be installed on time, that the power will be on, that the fiber backhaul will be lit. If SBAC’s credit rating is deteriorating, they might have to cut costs—and cost-cutting can show up in maintenance delays or slower response times for site modifications.

I went back and forth on this in Q4 2024 when I was comparing a lease from SBAC vs. a smaller operator. SBAC’s pricing was better. But the smaller operator offered faster installation (7 days vs. SBAC’s 14 days). My gut said SBAC was a safer bet because of their size. But now, with the downgrade, I’m wondering if that safety premium is eroding.

In the end, I went with a different large operator for that particular site. To be fair, SBAC is still a solid partner. But the downgrade added a data point to my decision matrix that I hadn’t fully accounted for before.

5. What’s the best multimeter for electricians got to do with tower leases?

Question: The keywords say “best multimeter for electricians.” I’m in a completely different field. Why is that in here?

Fair question. Honestly? I don’t have a strong opinion on multimeters—our field techs use Fluke because that’s what the spec calls for. But it got me thinking about a broader point:

Measuring the right things matters.

When you’re evaluating a tower lease or a carrier agreement, you need the right tool for the job. A cheap multimeter might give you a reading, but if you’re working on a 480V switchgear, you want something that’s certified and reliable. Same with a tower REIT: the lowest rent might look good on paper, but if the operator’s financial health (like a credit rating) is shaky, you might end up paying more in hidden costs—like downtime, renegotiation fees, or expedited relocation costs when a tower gets sold.

I built a cost calculator for our team after getting burned on this exact thing in 2023. We went with a cheaper tower operator, and when they got acquired, our lease terms got worse. Now, I always add a “credit quality” line item to my TCO spreadsheet. It’s not a big number, but it’s a check on whether I’m measuring the right thing.

Key Takeaways (If You’re In A Hurry)

• The S&P downgrade is real but not catastrophic. SBAC is still investment grade (BBB-). Bondholders are nervous; lessees should be mildly cautious.
• Lock in terms now if you can. Higher borrowing costs for SBAC may lead to less pricing flexibility later.
• Watch for behavioral shifts. Less capex commitment, slower site delivery if cash flow gets tighter.
• Measure the right things. Total cost of ownership includes operator stability. A low rent is worthless if the tower operator can’t deliver on time.
• The multimeter question? I’d ask your in-house electrical engineer. But if they say Fluke, go with that.

I can only speak to my experience as a mid-size carrier procurement manager—your situation might differ if you’re a large MNO with a dedicated tower sourcing team. If you’re interested, I’m happy to share my TCO calculator (it’s a messy spreadsheet, but it works). Just drop me a note.