KBRA Assigns Preliminary Ratings to Uniti Fiber ABS Issuer LLC and Uniti Fiber TRS Issuer LLC, Series 2025-1 Senior Secured Notes

KBRA is assigning preliminary ratings to the Series 2025-1 Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2025-1 Notes) from Uniti Fiber ABS Issuer LLC (the Lead Issuer) and Uniti Fiber TRS Issuer LLC (the Co-Issuer), a communications infrastructure securitization.

The Series 2025-1 Notes represent Uniti Fiber Holdings Inc.’s (the Company or the Manager) first securitization. The proceeds from the sale of the Notes will primarily be used to repay the Company’s outstanding indebtedness and pay related costs.

The business of the Issuers will be to own, manage and operate fiber optic cable communications systems for the delivery of dark and lit fiber infrastructure and transport services, including but not limited to mobile infrastructure including fiber-to-the-tower (FTTT) and small cell backhaul, enterprise internet and data center connectivity, as well as type two access . The assets include fiber networks (and related assets and infrastructure); the related rights agreement entered into with the relevant property owner or other parties, utilities municipalities or jurisdictional authorities for the locations where the fiber and related infrastructure are placed; and each related service order, statement of work, service agreement and customer agreement, as well as related receivables.

As of September 30, 2024 (the Cut-Off Date), the collateral included 19,580 circuit connections across four states, and had aggregated Monthly Recurring Charges (MRC) of approximately $10.7 million. The largest customers are telecommunications carriers, large and medium enterprises in diverse industries, government entities, data center operators and hyperscale cloud providers. The three largest contributors to MRC are nationally scaled telecommunications operators and High Quality Credit Worthy Tenants representing approximately 36.0% of MRC. The weighted average remaining tenant lease term based on MRC is approximately 3.8 years without renewals.

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Methodologies

• ABS: Communications Infrastructure Securitization (CIS) Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1007480

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