Our expectation for increased demand for fiber-based bandwidth, especially from wireless carriers; Recurring revenue business model with multiple-year contracts and sizable contractual revenue backlog; and Niche position serving less competitive markets. Highly leveraged capital structure; Increasing competition within fiber market and customer concentration; and Aggressive expansion-related capital expenditures, which could delay free operating cash flow generation. The ratings on Louisville, Colo.-based Zayo Group LLC (Zayo) reflect its highly leveraged capital structure, aggressive acquisition and capital investment strategy, and increasing competition among fiber-based bandwidth providers. Standard&Poor's Ratings Services expects significant capital expenditure requirements to grow Zayo's fiber-to-the-tower and dark fiber businesses, which could prevent free operating cash flow (FOCF) generation from turning positive over the next few years. Tempering
