Increased demand for data transport services, especially for wireless backhaul; Recurring revenue business model with multiple-year contracts and sizable contractual revenue backlog; and Niche position as fiber bandwidth provider generally serving less competitive metro markets. Highly leveraged capital structure; Significant competition within fiber market and customer concentration; Aggressive acquisition and capital investment strategy; and Expectations for negative free operating cash flow over the near term. The ratings on Louisville, Colo.-based Zayo Group LLC reflect its highly leveraged capital structure, aggressive acquisition and capital investment strategy, and significant competition among fiber-based bandwidth providers. We expect Zayo's capital expenditures to remain very high as it seeks to expand its fiber-to-the-tower and dark fiber businesses, which could prevent free operating cash flow (FOCF)
