Expansion risk; Intense competition from larger players, including incumbents and facility-based providers; Strong demand for bandwidth, especially for wireless backhaul; and Recurring revenue business model with multiple-year contracts and sizable contractual revenue backlog. Highly leveraged capital structure; Aggressive acquisition and capital investment strategy; Significant operating cash flow generation; and Adequate liquidity. The stable outlook on Zayo Group LLC reflects the company's good growth prospects balanced by what we consider to be a highly leveraged financial risk profile and aggressive expansion policies. We believe leverage will remain elevated between 5x-6x for the foreseeable future, but that liquidity should remain adequate given the company's healthy free operating cash flow and revolver availability. While our target for an upgrade is sustained leverage below
