Fitch Ratings has affirmed Uniti Group Inc.'s (Uniti) Long-Term Issuer Default Rating (IDR) at 'B-?'?.
The Rating Outlook is Stable. Fitch also affirmed Uniti Group LLC's, Uniti Services LLC's and Uniti Fiber Holdings Inc.'s IDRs at 'B-?' with a Stable Outlook and their senior secured debt rating of 'BB-?' with a Recovery Rating of 'RR1' and senior unsecured ratings of 'CCC+'/'RR5'.
Fitch expects the company to achieve positive revenue and EBITDA growth in the next 12-18 months and benefit from continued Hyperscaler and AI fiber demand. Fitch also expects the continued decline in legacy services and the negative impact of elevated capex over the next three years to lead to higher leverage, negative FCF, and reduced interest coverage. These factors reflect the company's weaker credit profile compared to the rating category.
Key Rating Drivers
Negative FCF: Fitch expects capex needs will result in material cash flow deficits for the next three-plus years due to the elevated capex to fund the FTTH build. Uniti is expected to access the capital markets, including potential ABS funding, to fund expected cash flow shortfalls. However, Fitch expects FCF should start to improve after 2028 as these expenditures decrease and EBITDA improves.
Revenue Pressures to Moderate: Fitch expects the company to face revenue pressure in the near term from declining legacy product revenue and competition. Over time, growth in the consumer fiber business is expected to offset this pressure. The company continues to expand fiber coverage to more households, raise penetration and capture AI-related demand. Fitch expects the company to generate yoy revenue growth in 2027. Fitch will monitor Uniti's revenue and EBITDA trajectory for signs of higher competition in the broadband market.
Maintain Strong Capital Access: Uniti has raised significant amounts of new debt over the last 18 months to repay higher coupon debt, refinance nearer term maturities and raise capital to fund their fiber build. Fitch believes the company must maintain strong access to the capital markets as they continue to fund cash shortfalls and extend maturities at attractive rates.
Elevated Leverage: Fitch expects EBITDA leverage of approximately 8.0x at YE 2026, up from the mid-6x range on a proforma basis at YE 2025. Leverage is expected to remain elevated over the next several years due to revenue and EBITDA pressures from Windstream's legacy revenue and high capex for planned Fiber to the Home deployments. Fitch expects EBITDA Interest coverage to be weak for the rating over the next several years.
Adequate Near-Term Liquidity: Uniti's liquidity at June 30, 2026 was approximately $1.45 billion, including about $609 million in cash and about $838 million of revolver availability. Both the $500 million legacy Uniti revolving facility and the $475 million legacy Windstream revolving facility mature in December 2027. The combined company has limited maturities until 2028 when roughly $570 million of secured debt matures. Fitch expects the company to continue to need to raise additional capital to fund the cash flow shortfalls.
Peer Analysis
Uniti is a US telecommunications company. They operate as an incumbent through its Kinetic business unit (ILEC business) which serves consumers and business in smaller urban or rural areas in 18 states. Uniti offers business services through Uniti Solutions (CLEC). The Fiber Infrastructure business provide infrastructure to other communication providers, hyperscalers and wireless towers.
Other similar telecommunications services providers include AT&T Inc. (BBB+/Negative), Verizon Communications Inc. (A-/Stable), Cincinnati Bell Inc. (B/Stable) and Lumen Technologies (B/Stable) as well as independents like Zayo Group Holdings, Inc (NR). AT&T and Verizon are much larger, more diversified, lower levered and with greater FCF generation than Uniti. Lumen is more similar to Uniti but is also larger with a greater focus on Enterprise/Hyperscaler customers and has lower leverage than Uniti.
Cincinnati Bell is further along in its fiber transition, with its Cincinnati build completed and its Hawaii build 70+% complete. It has lower leverage but is materially smaller than Uniti. Viasat, Inc. (B/Stable) is a GEO satellite operator who provides a range of communications services. Compared with Uniti, they have lower leverage and better FCF but face greater competitive threats.
Fitch's Key Rating-Case Assumptions
Uniti generates $3.62 billion in 2026 revenue;
The combined company delivers $1.47 billion in 2026 EBITDA;
Revenue grows slightly in 2027, and low to mid-single-digit growth thereafter;
EBITDA margins improve over time as higher-margin fiber becomes a larger share of the business;
The combined company allocates $1.53 billion in net capex for 2026 with capital intensity declining over time;
The company pays preferred equity dividends in cash.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using our Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP):
Business and financial profile factors (assessment, relative importance): management ('bb-?'?, Lower), sector characteristics ('bbb+', Lower), market and competitive positioning ('bb+', Moderate), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bbb', Moderate), profitability ('bb', Moderate), financial structure ('ccc-?'?, Higher), and financial flexibility ('b', Higher).
The quantitative financial subfactors are based on custom CRT financial period parameters: 40% weight for the forecast year 2026, 40% for the forecast year 2027 and 20% for the forecast year 2028.
B+ to CC considerations apply in our analysis and results in an adjustment of 1 notch(es).
The governance assessment of 'good' has no impact.
The operating environment assessment of 'aa-?' has no impact.
The SCP is 'b-?'?.
To derive the Long-Term IDR:
Fitch made no adjustments to the SCP, resulting in an IDR of 'B-?'?.
Recovery Analysis
The recovery analysis assumes that Uniti would be considered a going concern in bankruptcy and reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. The recovery analysis reflects Uniti's standalone credit-silo waterfall, and the revolvers are assumed to be fully drawn.
The going-concern EBITDA estimate reflects Fitch's view of sustainable, post-reorganization EBITDA, upon which we base the company's valuation. This results in a post-reorganization EBITDA estimate of $1,165 million. This GC EBITDA represents Fitch's estimate of GC EBITDA less the EBITDA ring-fenced as part of their ABS issuances. EBITDA pressures could stem from increased competition from cable and fixed wireless access providers, as well as slower than-expected demand from hyperscalers and other wholesale customers.
Post-reorganization valuation applies a 6.0x enterprise value multiple. This multiple reflects the higher asset value of fiber networks as Uniti continues to build out its network. It is in line with the range for telecom companies published in Fitch's 'Telecom, Media and Technology Bankruptcy Enterprise Values and Creditor Recoveries' report; the most recent edition indicates a median of 5.4x.
Other wireline companies that have made significant investments in fiber have traded at enterprise multiples ranging from 8.5x to 14x EBITDA over the past two years.
The recovery analysis produces a Recovery Rating of 'RR1' for the secured debt, reflecting strong recovery prospects, and 'RR5' for the senior unsecured debt, reflecting the lower recovery prospects for unsecured creditors given their position in the capital structure. The Preferred Equity issued at Uniti Group Inc., which is junior to all current and future senior secured and unsecured debt, is not included in the recovery analysis.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Larger-than-expected FCF deficits combined with reduced access to capital to fund the company's growth;
Deterioration in operating profile and market position due to competitive forces;
EBITDA interest coverage sustained below 1.5x.
Heightened competition negatively impacting results or an inability to execute operationally such that Fitch believes the existing capital structure is no longer sustainable.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Consistent gains in revenue and EBITDA that provide a clear path toward positive FCF;
Successful fiber deployment execution, including continued improvement in consumer fiber customer penetration.
EBITDA leverage sustained below 5.5x.
Liquidity and Debt Structure
Uniti had approximately $1.45 billion of liquidity as of June 30, 2026, consisting of unrestricted cash of approximately $609 million and revolver availability of $838 million. The $500 million Uniti revolving facility and the $475 million Windstream revolving facility mature in December 2027.
Subsequent to Quarter end, the company issued $1.1 billion of ABS associated with their Kinetic Fiber assets. The expected use of proceeds is to repay senior secured debt and general corporate purposes, including funding the planned fiber build program.
The next maturities for Uniti are the revolving credit facilities and 7.5% convertible senior notes due in 2027.
Issuer Profile
Uniti offers bundled broadband and voice services to consumers primarily in rural areas in 18 states as well as services to Enterprise customers and Wholesale offerings. On Aug. 1, 2025, Uniti completed its re-merger with Windstream.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included.
Climate Vulnerability Signals
The results of our Climate.VS screener did not indicate an elevated risk for Uniti Group Inc.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
RATING ACTIONS
Entity / Debt
Rating Type
Rating
Rating Action
Recovery
Prior
Uniti Group Inc.
LT IDR
B-
Affirmed
B-
Uniti Fiber Holdings Inc.
LT IDR
B-
Affirmed
B-
senior unsecured
LT
CCC+
Affirmed
RR5
CCC+
Uniti Group LLC
LT IDR
B-
Affirmed
B-
senior unsecured
LT
CCC+
Affirmed
RR5
CCC+
Uniti Services LLC
LT IDR
B-
Affirmed
B-
senior secured
LT
BB-
Affirmed
RR1
BB-
senior unsecured
LT
CCC+
Affirmed
RR5
CCC+
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
APPLICABLE CRITERIA
Corporates Recovery Ratings and Instrument Ratings Criteria (pub. 03 Aug 2024) (including rating assumption sensitivity)
Corporate Rating Criteria (pub. 10 Jan 2026) (including rating assumption sensitivity)
Sector Navigators - Addendum to the Corporate Rating Criteria (pub. 10 Jan 2026)
APPLICABLE MODELS
Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).
Corporate Monitoring & Forecasting Model (COMFORT Model), v8.2.0 (1)
ADDITIONAL DISCLOSURES
Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS
Uniti Fiber Holdings Inc. EU Endorsed, UK Endorsed
Uniti Group Inc. EU Endorsed, UK Endorsed
Uniti Group LLC EU Endorsed, UK Endorsed
Uniti Services LLC EU Endorsed, UK Endorsed
DISCLAIMER & DISCLOSURES
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