KBRA Assigns Ratings to VB-S1 Issuer, LLC Secured Tower Revenue Notes Series 2020-1, Affirms Ratings for Series 2018-1 and Withdraws Ratings for Series 2016-1

Kroll Bond Rating Agency (KBRA) assigns ratings to four classes of secured tower revenue notes, Series 2020-1 issued by VB-S1 Issuer, LLC, affirms ratings on three classes of Series 2018-1 and withdraws ratings for three classes of Series 2016-1.

The Secured Tower Revenue Notes, Series 2020-1 Class C-1 Notes, Series 2020-1 Class C-2 Notes, Series 2020-1 Class D Notes, the Series 2020-1 Class F Notes and the Series 2020-1 Class R Notes issued by VB-S1 Issuer, LLC represent Vertical Bridge Management, LLC’s fifth securitization and the Issuer’s third securitization. The Series 2020-1 Notes are issued as an additional series of notes pursuant to the amended and restated indenture as of the closing date. The transaction structure is a master trust, and as such, the indenture permits the issuance of additional classes and series of notes. The Issuer’s Series 2016-1 Notes will be paid in full from the issuance of the Series 2020-1 Notes. Both the Issuer and Manager are indirect subsidiaries of Vertical Bridge REIT, LLC.

On the closing date, the transaction is expected to own or lease 2,797 Tower Sites upon which the closing date asset entities have entered into 4,719 tenant leases. The Portfolio has annualized run rate revenue of approximately $119.0 million and annualized run rate net cash flow of approximately $87.5 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 U.S. Information Disclosure Form 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 U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. 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 and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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