Fitch rates Uniti debt B

Fitch Ratings said it affirmed the long-term issuer default rating of Uniti Group Inc. and the issuer default ratings of Uniti Group LP and Uniti Fiber Holdings at B+.

In addition, the senior secured debt of Uniti Group has been affirmed at BB+/RR1 and the senior unsecured debt at Uniti Group and Uniti Fiber Holdings has been affirmed at B/RR5.

The outlook is stable.

Fitch assigned a B/RR5 rating to Uniti Group's $700 million offering of senior unsecured debt due 2030.

The proceeds are expected to be used to fund the redemption of the company's $600 million of 2024 senior notes and any related premiums and expenses. Any remaining proceeds are expected to be used to prepay Windstream settlement obligations.

“Uniti's ratings reflect the stability of its revenues and EBITDA due to its new master leases in the 2020 Windstream settlement agreement and expectations for growth in its non-Windstream leasing business as well as in its fiber segment,” the agency said in a news release.

“Windstream's revenue growth prospects benefit from the secular tailwinds for data consumption and broadband connectivity, both wireline and wireless.”

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