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

DBRS Ltd. (Morningstar DBRS) has assigned a credit rating of BBB (high), Stable trend, to Bell Canada’s (Bell Canada or the Company; rated BBB (high) with a Stable trend by Morningstar DBRS) CAD 400 million MTN Debentures, Series M-61, due 2053 (Re-opening) and CAD 1,100 million MTN Debentures, Series M-63, due 2034 (the MTN Debentures).

The MTN Debentures are unsecured and rank pari passu with all other unsecured and unsubordinated indebtedness of the Company. The M-61 MTN Debentures and M-63 MTN Debentures are fully and unconditionally guaranteed by BCE Inc. (rated BBB with a Stable trend).

Morningstar DBRS expects Bell Canada to use the total net proceeds of the MTN Debentures issuances to fund the repayment of Bell Canada MTN debentures debt maturing in the first quarter of 2025 and general corporate purposes.

The rating assigned to this newly issued debt instrument is based on the rating of an already-outstanding debt series of the above-mentioned debt instruments.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental, Social, or Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at (January 23, 2024) https://dbrs.morningstar.com/research/427030

BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA)

(A) Weighting of BRA Factors
In the analysis of Bell Canada, the relative weighting of the BRA factors was approximately equal.

(B) Weighting of FRA Factors
In the analysis of Bell Canada, the relative weighting of the FRA factors was approximately equal.

(C) Weighting of the BRA and the FRA
In the analysis of Bell Canada, the BRA carries greater weight than the FRA.

Notes:
All figures are in Canadian dollars unless otherwise noted.

Morningstar DBRS applied the following principal methodologies:
-- Global Methodology for Rating Companies in the Communications Industry (April 15, 2024),
https://dbrs.morningstar.com/research/431168
-- Global Methodology for Rating Companies in the Broadcasting Industry (April 15, 2024),
https://dbrs.morningstar.com/research/431165

Morningstar DBRS credit ratings may use of one or more sections of the Morningstar DBRS Global Corporate Criteria (April 15, 2024), https://dbrs.morningstar.com/research/431186, which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

The following methodologies have also been applied:
-- Morningstar DBRS Criteria: Approach to Environmental, Social and Governance Risk Factors in Credit Ratings (January 23, 2024), https://dbrs.morningstar.com/research/427030

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/397223

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info-DBRS@morningstar.com.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS trends and credit ratings are under regular surveillance.

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.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577