KBRA is assigning preliminary ratings to the Series 2024-1 Class A-2 Notes, Class B Notes, and Class C Notes (together, the Series 2024-1 Notes) from Hotwire Funding, LLC, (the Issuer), a communications infrastructure securitization.

Hotwire 2024-1 represents Hotwire Communications, Ltd.’s (Hotwire, the Company or the Parent) third securitization from its master trust, of which approximately $2.2 billion is currently outstanding, assuming the Class A-1-V variable funding notes are fully drawn. The outstanding prior Series 2021-1 Notes and Series 2023-1 Notes, and Series 2024-1 Notes (altogether, the Notes) share in the same collateral pool. KBRA re-analyzed the outstanding Series 2021-1 Notes and Series 2023-1 Notes in conjunction with the issuance of the Series 2024-1 Notes, and anticipates affirming all of the outstanding ratings as of the Series 2024-1 closing date.

The business of the Issuer is to own, manage and operate fiber optic infrastructure for the delivery of services to customers including, but not limited to, data services, IP-delivered voice services, as well as other revenue-generating services. The assets will consist primarily of fiber-to-the-premise infrastructure, certain headend, colocation, and other facilities and equipment that transmit broadband-based services, the middle mile fiber networks delivering certain content and data from the headend and other facilities to the fiber networks, related easements, rights of use and other access agreements (collectively, Fiber Network Assets).

As of May 1, 2024, (the Series 2024-1 Cut-off Date or Cut-off Date), the Issuer provides internet and cable services through 934 networks, which have an aggregate Annualized Run Rate Revenue of approximately $346.7 million and an Annualized Run Rate Net Operating Income of approximately $225.2 million.

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Methodologies

• ABS: Communications Infrastructure Securitization (CIS) Global Rating Methodology
• Structured Finance: 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.

Doc ID: 1004332

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