On June 27, 2025, the U.S. Supreme Court affirmed the constitutionality of the funding mechanism for the Federal Communications Commission's (FCC)?s Universal Service Fund (USF) program in a 6-3 decision. As a result, we believe the risk of potential loss of this subsidy revenue, which is high-margin and accounted for about 42% of GCI LLC's 2024 total revenue, is very low. Additionally, we expect the company?s financial policy as an independent, publicly traded entity will be more conservative than it was under its previous ownership by Liberty Broadband Corp. Therefore, we raised our issuer credit rating on GCI one notch to 'BB-' from 'B+'. We also raised our issue-level rating on the company?s senior secured debt one notch to 'BB+'
