DBRS Assigns Rating of BBB (high) with a Stable Trend to Bell Canada’s Series US-1 Notes

DBRS Limited (DBRS) assigned a rating of BBB (high) with a Stable trend to Bell Canada’s (the Company) USD 750.0 million 4.464% Series US-1 Notes, due April 1, 2048.

The Series US-1 Notes are unsecured and rank pari passu with all other unsecured and unsubordinated indebtedness of Bell Canada. The Series US-1 Notes were issued under Bell Canada’s trust indenture dated September 12, 2016, and are fully and unconditionally guaranteed by BCE Inc. Bell Canada is using the proceeds to fund the redemption of the Company’s $400 million principal amount 3.50% MTN Debentures, Series M-28, due September 10, 2018; to fund the redemption of the Company’s $200 million principal amount 4.59% Series 9 Notes, due October 1, 2018; and for general corporate purposes

Bell Canada’s ratings continue to be supported by the Company’s considerable size and scale and its 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, risks associated with technological and regulatory changes and 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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