Moody’s revises Zayo to positive

Moody's Investors Service said it changed the outlook for Zayo Group, LLC to positive from stable based on its improved fundamental credit profile and assigned a Caa1 (LGD5) rating to its proposed $350 million senior unsecured notes offering.

The agency also affirmed Zayo's B2 corporate family rating, B2-PD probability of default rating, SGL-1 speculative grade liquidity rating, Caa1 (LGD5) unsecured debt rating and Ba2 (LGD2) senior secured debt rating.

Moody’s said the B2 corporate family rating reflects the company’s strong revenue growth, stable base of contracted recurring revenues and valuable fiber optic network assets. Zayo is well positioned for continued growth from strong bandwidth demand from both carrier and enterprise customers.

Management has demonstrated its ability to execute a high quantity of both small and large acquisitions and achieve (or exceed) projected merger benefits, the agency said.

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