DBRS Assigns Rating of BBB (high) with a Stable Trend to Bell Canada’s Debentures

DBRS Limited (DBRS) has today assigned a rating of BBB (high) with a Stable trend to Bell Canada’s multi-tranche MTN Debentures, which closed on February 27, 2017.

The issuance is made up of the following tranches:
(1) $1.0 billion 2.70% Debentures, Series M-44 due February 27, 2024, and
(2) $500.0 million 4.45% Debentures, Series M-45 due February 27, 2047.

The MTN Debentures are unsecured and rank pari passu with all other unsecured and unsubordinated indebtedness of Bell. The MTN Debentures were issued under Bell’s November 28, 1997 trust indenture and are fully and unconditionally guaranteed by BCE Inc. Bell is using the proceeds for repayment of indebtedness, to fund capital expenditures or acquisitions and for general corporate purposes.

Bell’s ratings continue to be supported by the Company’s considerable size and scale, leading market position in wireline services, wireless advances and revenue diversification. The ratings also reflect intensifying competition, the expected loss of legacy wireline services revenues, risks associated with technological and regulatory changes as well as the industry’s capital-intensive nature.

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

The principal 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 dbrs.com under Methodologies.