The ratings on BCE Inc. reflect a change in the rating methodology previously applied to the company to a consolidated group approach from an investment holding company approach. This reflects an expected change in the proportion of ownership in Bell Canada to 100% from 80%, and the exit of a strong equity partner in SBC Communications Inc.; the reduction in the level of diversity, with assets held in the same major industry; and little geographic diversification outside of Canada. Standard & Poor's Ratings Services believes the remaining core assets are integral to BCE's ongoing domestically focused business strategy, although BCE has financed all of its subsidiaries on a stand-alone basis without guarantees. Based on the consolidated analytical approach, the investment-grade
