KBRA is assigning preliminary ratings to the Series 2023-1 Class A-1 Notes, Class A-2 Notes, Class B Notes, and Class C Notes (the Series 2023-1 Notes) from Blue Stream Issuer, LLC, (the Issuer), a communications infrastructure securitization.

The Series 2023-1 Notes are anticipated to be issued by Blue Stream Issuer, LLC (the Issuer), which represents Blue Stream Communications LLC’s (Blue Stream, the Company, or the Parent) first securitization. The transaction structure is a master trust, and as such, the indenture permits the issuance of additional classes and series of notes. The proceeds from the sale of the Notes will primarily be used to repay certain indebtedness including those relating to the Fiber Networks, fund various transaction accounts, pay certain expenses, and for general corporate purposes, including distributions to the parent for growth capital expenditures or a return to capital to its shareholders.

The business of the Issuer will be to own, manage and operate fiber optic communication systems for the delivery of digital infrastructure services used by multi-dwelling units (MDUs) and/or multi-tenant properties. The Issuer will provide certain packaged services for a bulk rate (each a Bulk Contract) to the contract counterparty. Contract counterparties include homeowners’ associations (HOAs), condominium associations (COAs), hotels, municipalities (each a Community) as well as individual residents within a Community, and individual residents under a Right of Entry (ROE) Contract. The assets will consist primarily of fiber-to-the-home (FTTH) infrastructure and in certain limited cases, coaxial cable, related easements, rights of use and other access agreements (collectively, Fiber Network Assets), related customer contracts and a shared infrastructure servicer agreement for use of certain shared assets necessary to operate such Fiber Network Assets. Each collection of Fiber Network Assets within a specific Community is referred to as a “Fiber Network”.

As of December 31, 2022 (the Series 2023-1 Cut-off Date or Cut-off Date), the Issuer provides internet and cable services through 173 networks located throughout Florida, which have an aggregate Annualized Run Rate Revenue (ARRR) of approximately $78.5 million and an Annualized Run Rate Net Operating Income (ARRNOI) of approximately $45.7 million.

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Related Publications

• Communications Infrastructure Securitization (CIS) Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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