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

DBRS Limited (DBRS) assigned a rating of BBB (high) with a Stable trend to Bell Canada’s (the Company) $500.0 million 3.35% Series M-47 Debentures, due March 12, 2025 (the M-47 Debentures).

The M-47 Debentures are unsecured and rank pari passu with all other unsecured and unsubordinated indebtedness of Bell Canada. The M-47 Debentures were issued under Bell Canada’s November 28, 1997, trust indenture and are fully and unconditionally guaranteed by BCE Inc. Bell Canada is using the proceeds to fund the redemption of the Company’s $300 million principal amount 5.52% MTN Debentures, Series M-33, due February 26, 2019, and for the repayment of short-term debt.

Bell Canada’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 revenue 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.

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