KBRA Assigns Preliminary Ratings to ALLO Issuer, LLC, Series 2024-1 Senior Secured Notes

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

ALLO 2024-1 represents ALLO Issuer, LLC’s (the Issuer) second securitization following the initial Series 2023-1 Notes. The transaction structure is a master trust, and as such, the indenture permits the issuance of additional classes and series of notes subject to certain conditions including rating agency confirmation. The proceeds from the sale of the Notes will primarily be used to pay down the outstanding balance of the Series 2023-1 A-1-V Notes, fund certain reserve accounts including a prefunding account, transaction fees, and for general corporate purposes, which may include capital expenditures.

The business of 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, broadband, telephone, video solutions, as well as other revenue-generating services. Customers include individual residential consumers (representing approximately 69% of customer lines as of April 2024) and businesses comprising commercial and governmental organizations (together representing approximately 31% of customer lines) that utilize fiber infrastructure encompassing geographic locales. The assets consist of fiber-to-the-premise (FTTP) infrastructure, customer agreements, related easements, rights of use 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).

As of April 30, 2024 (the Cut-off Date), the Issuer provides internet services within the Contributed Markets to approximately 118,000 residential and commercial subscribers across Nebraska and a portion of Colorado, which have an annualized run rate revenue (ARRR) of approximately $157 million. Within the Contributed Markets, data, video, and voice represented approximately 71.4%, 17.8% and 9.9% of revenues, respectively as of the Cut-off Date.

To access rating and relevant documents, click here.

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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: 1004922

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