KBRA assigns preliminary ratings to Blue Stream Issuer, LLC Series 2026-1 (Blue Stream 2026-1), a communications infrastructure securitization issued by Blue Stream Issuer, LLC (the Issuer). Concurrently, KBRA anticipates affirming the outstanding ratings on the Series 2023-1 Class A-1-V Notes and Series 2024-1 Notes and withdrawing the ratings on the Series 2023-1 Class A-2, Class B and Class C Notes following their repayment at the closing of Series 2026-1.

Blue Stream 2026-1 represents Blue Stream Communications LLC’s (Blue Stream, the Company, or the Parent) third securitization. The proceeds from the sale of the Notes will primarily be used to repay the outstanding Series 2023-1 Term Notes, repay the outstanding balance of the Series 2023-1 Class A-1-V Notes, repay a portion of the Company’s existing credit facility, fund various transaction accounts, including the prefunding account, pay certain expenses, and for general corporate purposes.

The business of the Issuer is to own, manage, and operate fiber optic communication systems for the delivery of digital infrastructure services used by multi-dwelling units (MDUs) and/or multi-tenant properties. The Issuer provides certain packaged services for a bulk rate (each a Bulk Contract) to the contract counterparty. Contract counterparties include homeowners’ associations (HOAs), condominium associations (COAs), hotels, municipalities (each a Community), as well as individual residents within a Community and individual residents under a Right of Entry (ROE) Contract. The assets consist primarily of fiber-to-the-home (FTTH) infrastructure and, in certain limited cases, coaxial cable, related easements, rights of use and other access agreements (collectively, Fiber Network Assets), related customer contracts, and a shared infrastructure services agreement for use of certain shared assets necessary to operate such Fiber Network Assets. Each collection of Fiber Network Assets within a specific Community is referred to as a “Fiber Network.”

As of July 31, 2026 (the Series 2026-1 Cut-off Date or Cut-off Date), the Issuer provides internet and cable services through 407 networks located primarily throughout Florida, with some networks in Texas, which have an aggregate Annualized Run Rate Revenue (ARRR) of approximately $154.9 million and an Annualized Run Rate Net Operating Income (ARRNOI) of approximately $99.7 million.

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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.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties 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 US 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. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. 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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