DBRS Rates Bell Canada’s $1.25 Billion MTN Debenture Issue A (low), Stable

DBRS has today assigned a rating of A (low) with a Stable trend to Bell Canada’s (Bell Canada or the Company) $1.25 billion MTN Debentures (the MTN Debentures) issuance, which includes:

(1) Series M-30 seven-year, $750 million 3.15% notes, due September 29, 2021 and

(2) Series M-31 30-year, $500 million 4.75% notes, due September 29, 2044.

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. (BCE; rated BBB (high) with a Stable trend by DBRS).

Approximately $1 billion of the net proceeds of the offering are intended to fund the payment of the 25% cash consideration of BCE’s acquisition of the publicly held minority interest in Bell Aliant Inc., pursuant to BCE’s August 14, 2014, offer to purchase. The balance will be used for general corporate purposes.

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

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.