BCE Inc./Bell Canada: Rating Report

On March 8, 2019, DBRS Limited (DBRS) assigned a Short Term Issuer Rating of R-2 (middle) with a Stable trend to BCE Inc. (BCE), the parent company of Bell Canada (the Company). This rating effectively represents a placeholder for BCE as if it was an issuer of commercial paper. As a result, DBRS also discontinued and withdrew the rating of BCE’s Commercial Paper (previously R-2 middle, Stable). DBRS also confirmed BCE’s Issuer Rating and Unsecured Debentures rating, as well as the ratings of Bell Canada and Bell-MTS Inc. (MTS, the wholly owned subsidiary). All trends remain Stable. The rating confirmations are supported by steady operating income growth and stable financial metrics. The ratings are supported by the Company’s considerable size and scale, as well as its leading market position in wireline services, number two market position in wireless with strong advances and revenue diversification. The ratings also reflect intensifying competition, the expected loss of legacy wireline services revenues and the risks associated with technological and regulatory change.