U.S.–based fiber infrastructure and colocation provider Zayo Group LLC announced that it is evaluating strategic alternatives following the postponement of its Analyst Day. We are placing our 'B+' issuer credit rating on Zayo on CreditWatch with negative implications. While the outcome of the strategic review is uncertain, we believe it is likely that Zayo will be sold to a financial sponsor, which could result in higher leverage. We intend to resolve the CreditWatch in the coming months as more information becomes available. The CreditWatch placement follows Zayo's announcement that management is evaluating strategic alternatives following the postponement of its Analyst Day, scheduled for March 14, 2019. A take-private transaction by a financial sponsor could result in leverage rising above 6.5x,
