KBRA releases research on enterprise fiber, a growing segment of the fiber asset-backed securities (ABS) market. Since KBRA rated the first public fiber-backed securitization, the market has expanded beyond residential broadband to include a broader range of enterprise (B2B) fiber services, including the first enterprise fiber transaction in Q1 2025. In that time, KBRA has rated 13 issuances totaling approximately $16 billion. While fiber-to-the-premises (FTTP) generally reflects a more standardized residential product and customer base, enterprise fiber is more complex, with multiple service types tailored to distinct business needs.

Key Takeaways

• Dark fiber and wavelength provide the most stable, long-term revenue, supported by low churn and high switching costs.
• Network connectivity is critical for day-to-day operations but has incrementally higher churn and shorter contract terms.
• Add-on and managed services are less sticky on a standalone basis but are typically sold alongside core connectivity, supporting overall customer retention.
• Enterprise customers typically purchase bundled, multi-service solutions from a single provider, with revenue supported by integrated, long-term relationships rather than standalone products. As a result, portfolio stability is closely tied to service mix, with infrastructure-heavy offerings supporting more predictable cash flows.

Click here to view the report.

Recent Publications

• ABS: Communications Infrastructure Securitization (CIS) Global Rating Methodology
• ABS: Data Center ABS Global Rating Methodology
• Fiber ABS: Enterprise Fiber Takes Industry Beyond FTTP’s Last Mile

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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