...August 17, 2026 This report does not constitute a rating action. We continue to view Brightspeed's capital structure as unsustainable, which supports the '###+' issuer credit rating and negative outlook. As of March 31, 2026, the company's leverage was over 50x. We expect it will remain elevated at above 10x for the next few years on elevated costs associated with the expansion of its fiber build. The company is aggressively overbuilding its legacy copper network that supports digital subscriber line (DSL) connectivity, which is in secular decline. In addition, Brightspeed has about $12.5 billion in S&P Global Ratings-adjusted debt, with a substantial portion of its capital structure utilizing payment-in-kind (PIK) interest. Our forecast projects that the company will start to grow revenue in the coming quarters, as strong growth in its consumer fiber business offsets roughly 30% declines in consumer DSL. However, we believe that earnings will remain weak on elevated customer acquisition...
