Morningstar DBRS Finalizes Its Provisional Credit Rating of BBB (low), Under Review With Negative Implications, on Bell Canada's Subordinated Debt Issuance

DBRS Limited (Morningstar DBRS) finalized its provisional credit rating of BBB (low), Under Review with Negative Implications, on Bell Canada's (Bell Canada or the Company) CAD 1.25 billion 5.625% Fixed-to-Fixed Rate Junior Subordinated Notes, Series C due March 27, 2055 (the Notes).

The Notes are direct unsecured subordinated debt obligations of Bell Canada and, accordingly, in the event of a liquidation, dissolution or winding-up of Bell Canada, the payment of principal and interest on, and the applicable redemption price for, each series of the Offered Notes, as provided in the U.S. Subordinated Indenture, will be contractually subordinated in right of payment to the prior payment in full of all Bell Canada senior debt then outstanding.

The payment of principal, interest, and other payment obligations under each series of the Notes will be fully, irrevocably and unconditionally guaranteed by BCE Inc. (the Guarantor) on a junior subordinated basis.

Bell Canada intends to use the net proceeds from the offering of the Notes to repurchase, redeem, or repay, as applicable, senior indebtedness of the Company and for other general corporate purposes.

The credit rating assigned to this newly issued debt instrument is based on the credit rating of an already-outstanding debt series of the above-mentioned debt instrument. Please refer to https://dbrs.morningstar.com/research/442642 for more information, including all relevant disclosures.

The rating listed above is based on Bell Canada's Prospectus Supplement for CAD1.25 billion 5.625% Fixed-to-Fixed Rate Junior Subordinated Notes, Series C due March 27, 2055, dated March 20, 2025 and information provided by BCE Inc./Bell Canada to Morningstar DBRS as of March 26, 2025.

Continuation of the rating is subject to the provision to Morningstar DBRS of timely and sufficient information and/or data for the purposes of monitoring the above-noted rating.

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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