...NEW YORK (S&P Global Ratings) Nov. 12, 2018--S&P Global Ratings said today that it views Zayo Group LLC's (B+/Stable/--) recent announcement that it will separate Zayo into two public companies as a modest credit positive. The spin-off will separate much of the company's lit services businesses and competitive local exchange (CLEC) businesses (Enterprise Co) from its fiber solutions, colocation, and wavelength businesses (Zayo Infra Co), the latter of which will be the surviving entity. From a business risk perspective, we view the spin-off favorably because Zayo will be retaining the higher margin businesses that have better secular trends and revenue visibility associated with dark fiber and mobile infrastructure services. In addition, we expect the company to put in place a long-term master customer agreement with Enterprise Co., formalizing the already existing inter-company relationships into arms-length agreements, which should provide additional cash flow stability. These benefits...
