Research Update: BCE Inc. Ratings Affirmed At 'BBB+'; Financial Risk Profile Revised To Significant From Intermediate

We forecast Quebec-based diversified telecom service provider BCE Inc.'s leverage will remain at 3.3x-3.4x at least through 2024, reflecting elevated capital spending, ongoing dividend payments, and upcoming C-band and mmWave spectrum auctions. Therefore, S&P Global Ratings revised its assessment of BCE's financial risk profile downward to significant from intermediate, but at the same time revised the comparable rating analysis modifier to positive from neutral. This reflects our view of BCE's strong competitive position in Canada and sustained EBITDA growth and low earnings volatility, underpinned by solid operational execution and material network investments. We also affirmed our ratings on BCE (and its subsidiaries), including our 'BBB+' issuer credit rating. The stable outlook reflects BCE's revenue growth that, combined with a focus

...- We forecast Quebec-based diversified telecom service provider BCE Inc.'s leverage will remain at 3.3x-3.4x at least through 2024, reflecting elevated capital spending, ongoing dividend payments, and upcoming C-band and mmWave spectrum auctions. - Therefore, S&P Global Ratings revised its assessment of BCE's financial risk profile downward to significant from intermediate, but at the same time revised the comparable rating analysis modifier to positive from neutral. This reflects our view of BCE's strong competitive position in Canada and sustained EBITDA growth and low earnings volatility, underpinned by solid operational execution and material network investments. - We also affirmed our ratings on BCE (and its subsidiaries), including our '###+' issuer credit rating. - The stable outlook reflects BCE's revenue growth that, combined with a focus on cost control, should support annual organic EBITDA growth in the low single-digit percentage area. Although elevated investments and dividend...

Research Update