DBRS Rates Bell Canada’s $1 Billion MTN Debenture Issue A (low), Stable

DBRS has today assigned a rating of A (low) to Bell Canada’s $1 billion MTN Debentures, Series M-27 (the MTN Debentures), which was announced on June 12, 2013. The seven-year MTN Debentures will mature on June 17, 2020, carrying a coupon rate of 3.25%.

The MTN Debentures (issued under Bell Canada’s $4.0 billion shelf program) are unsecured and rank pari passu with all other unsecured and unsubordinated indebtedness of Bell Canada. The MTN Debentures were issued under Bell Canada’s November 28, 1997, trust indenture and are fully and unconditionally guaranteed by BCE Inc.

DBRS expects Bell Canada to use the proceeds from this issue for general corporate purposes, including the repayment of short-term debt and funding a portion of the cost of BCE Inc.’s proposed acquisition of Astral Media Inc. (Astral), which is expected to close in early summer, pending approval by the Canadian Radio-television and Telecommunications Commission (CRTC).

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

The applicable methodologies are Rating the Communications Industry, Rating the Television Broadcasting Industry and Rating the Radio Broadcasting Industry, which can be found on our website under Methodologies.