Crown Castle: Lower Rates Offer Tailwind, But Competitive And Refinancing Risks Mount (Rating Upgrade)

xijian Interest rate-sensitive stocks are among the few that may perform well in a bear market, particularly those that have lost value as interest rates have risen. One potential example is the telecommunications REIT Crown Castle (NYSE:CCI), which had lost around half its value from 2021 to 2023 due primarily to higher interest rates. As rates rose, the company's interest costs also did, resulting in a sharp increase in its effective leverage (times interest earned). Further, as a REIT, the fair value of ...