Fitch Rates APLD ComputeCo LLC's (Subsidiary of Applied Digital) Senior Secured Notes 'BB-'/'RR3'

Fitch Ratings assigned APLD ComputeCo LLC's $2.35 billion senior secured notes a 'BB-' rating with a Recovery Rating of 'RR3'. The rating reflects the project's contracted revenue profile, anchored by a 15-year lease with CoreWeave, Inc. Despite higher interest rates affecting financial metrics, the rating remains stable. Risks include tenant credit profile, ability to raise additional debt, and expansion risks. The project benefits from low-cost power but faces latency limitations for cloud computing. Completion risks are mitigated by experienced contractors and secured costs.