KBRA Assigns Preliminary Ratings to Hotwire Funding LLC, Series 2021-1

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes from Hotwire Funding LLC, Series 2021-1, an asset backed securitization backed by fiber-to-the-home networks.

The transaction represents Hotwire Communications, Ltd.’s (“Hotwire” or the “Company”) first securitization. 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.

As of June 2021, the Issuer provides internet and cable services through 515 networks, which have an aggregate Annualized Run Rate Revenue of approximately $214.1 million and an Annualized Run Rate Net Operating Income of approximately $127.5 million.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

• General Global Rating Methodology for Asset-Backed Securities
• US CMBS Property Evaluation 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 pursuant to the Temporary Registration Regime. 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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