S&P: Zayo on positive watch

S&P said it placed the B corporate credit rating on Zayo Group LLC on CreditWatch with positive implications.

The positive watch follows news that Zayo has entered into a definitive agreement to acquire Electric Lightwave (formerly Integra) for $1.42 billion.

The transaction is expected to close in early 2017, S&P said.

The deal will further increase the scale of the company's fiber network, the agency said, and generate meaningful cost synergies.

S&P also said it believes Zayo is well positioned to take advantage of increasing demand for bandwidth from both carrier and enterprise customers for the foreseeable future.

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