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KBRA Assigns Preliminary Ratings to Metronet Infrastructure Issuer, LLC, Series 2025-4 and Takes Other Rating Actions

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KBRA assigns preliminary ratings to Series 2025-4 (Metronet 2025-4, or the Series 2025-4 Notes) from Metronet Infrastructure Issuer, LLC (the Issuer), a communications infrastructure securitization (CIS) that is primarily collateralized by fiber-to-the-premises (FTTP) networks and related contracts.

Metronet 2025-4 represents MetroNet System Holdings, LLC’s (MetroNet’s, the Parent’s, or the Company’s) fourth KBRA-rated series, following the establishment of the master trust in July 2025. In conjunction with the issuance of the Series 2025-4 Notes, KBRA is anticipated to affirm the ratings on the Issuer’s outstanding notes, including the Series 2025-1 Class A-2, Class B, and Class C Notes, the Series 2025-2 Class A-2, Class B, and Class C Notes, and the Series 2025-3 Class A-1 Notes (collectively, with the Series 2025-4 Notes, the Notes). The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2025-4 Notes.

The business of Metronet Infrastructure Issuer, LLC (the Issuer) is to own, manage, and operate fiber optic communication systems infrastructure for the delivery of communication services to customers including, but not limited to, data services, IP-delivered voice services, and other services and equipment. Underlying customers include individual residential consumers whose associated monthly recurring charges are remitted directly to T-Mobile USA, Inc. (T-Mobile) and then remitted by T-Mobile to Metronet who then remits to the trust. The portion of expected revenues to be remitted by T-Mobile are estimated to represent over two thirds of pro-forma revenue, and commercial customers including commercial enterprises, multi-tenant properties, schools, hospitals, libraries, and other governmental institutions are expected to constitute the remaining pro-forma revenue. The assets consist of FTTP infrastructure, customer agreements, related easements, licenses and permits, rights of use, a master framework agreement and other access agreements (collectively, Fiber Network Assets). Each collection of networks and their assets are collectively referred to as “Fiber Networks” within certain geographic locales (Contributed Markets). The annualized revenue supporting the transaction is estimated to be approximately $488.1 million, which nets to an Annualized Run Rate Revenue (ARRR) of approximately $334.7 million after various senior expenses.

A FTTP master framework agreement (T-Mobile MFA) has been entered into between T-Mobile and the Issuer and other transaction entities (each, an MFA Supplier, together the MFA Supplier Group). These MFA Suppliers are subsidiaries of Metronet. In this T-Mobile MFA, T-Mobile is obligated to remit to the MFA Supplier Group monthly recurring charges for services delivered to the underlying customers (who in turn pay T-Mobile directly) under the agreement.

To access ratings and relevant documents, click here.

Click here to view the report.

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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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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