Bulletin: BCE Inc.'s Proposed Acquisition Of Ziply Fiber Is Neutral For The Rating

This report does not constitute a rating action. TORONTO (S&P Global Ratings) Nov. 4, 2024--S&P Global Ratings today said that BCE Inc.'s (BBB/Stable/--) proposed acquisition of U.S.-based Ziply Fiber for about C$7.0 billion (including debt at Ziply) will be neutral for the company's credit profile. We expect the acquisition will provide BCE with a new avenue of expansion while only modestly increasing its leverage (by about 0.1x). We expect the company will fund the acquisition using the proceeds from the sale of its stake in in Maple Leaf Sports&Entertainment (MLSE) along with cash contributions from its dividend reinvestment program (DDRIP), which it will implement starting in late 2024. We believe the transaction will close in the second half

...November 4, 2024 This report does not constitute a rating action. TORONTO (S&P Global Ratings) Nov. 4, 2024--S&P Global Ratings today said that BCE Inc.'s (###/Stable/--) proposed acquisition of U.S.-based Ziply Fiber for about C$7.0 billion (including debt at Ziply) will be neutral for the company's credit profile. We expect the acquisition will provide BCE with a new avenue of expansion while only modestly increasing its leverage (by about 0.1x). We expect the company will fund the acquisition using the proceeds from the sale of its stake in in Maple Leaf Sports & Entertainment (MLSE) along with cash contributions from its dividend reinvestment program (DDRIP), which it will implement starting in late 2024. We believe the transaction will close in the second half of 2025. Pro forma for the acquisition, we expect BCE will maintain debt to EBITDA in the 3.7x-3.8x range in 2025, which is within our expectations and commensurate with the current rating. We also believe that the acquisition...

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