DBRS Discontinues STA-2 (high) Stability Rating of Bell Aliant Income Fund

DBRS has today discontinued the STA-2 (high) Stability Rating of Bell Aliant Regional Communications Income Fund (the Trust) following the Trust’s reiteration in today’s Q3 2010 results release that it remains on track to convert to a corporation effective January 1, 2011. This conversion will be undertaken by way of a Plan of Arrangement for which the Trust received final court order on June 24, 2010.

Upon conversion, Bell Aliant Inc. will become the listed entity that will own all but one share of the newly amalgamated Bell Aliant Regional Communications Inc., which will hold, directly or indirectly, the partnership interests in Bell Aliant Regional Communications Limited Partnership (Bell Aliant LP), Télébec, Limited Partnership (Télébec) and NorthernTel, Limited Partnership (NorthernTel).

Bell Aliant LP, Télébec and NorthernTel will continue to carry on their respective operating businesses, which support the debt at these entities. DBRS notes that this conversion does not have an impact any of the ratings of the operating entities, including Bell Aliant LP’s R-1 (low) and BBB (high) ratings and Télébec’s and NorthernTel’s BBB (high) long-term ratings.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Income Funds, which can be found on our website under Methodologies.