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

DBRS Limited (DBRS) assigned a rating of BBB (high) with a Stable trend to Bell Canada’s multi-tranche MTN Debentures, which closed on September 29, 2017.

The issuance was made up of the following tranches:
(1) $700.0 million 3.00% Debentures, Series M-40 due October 3, 2022, and
(2) $800.0 million 3.60% Debentures, Series M-46 due September 29, 2027.

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 and 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.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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