The ratings on BCE Inc. reflect the leading market position of the company's wholly owned subsidiary, Bell Canada (the largest communications company in Canada); the expectation that Bell Canada will continue to be the single largest contributor to revenue and EBITDA; and BCE's commitment to maintaining a balanced capital structure. The ratings are analytically consolidated and equalized with those on Bell Canada. The ratings are supported by Bell Canada's large local-access and wireless customer bases, growth in wireless and consumer digital subscriber line (DSL) revenues, and the company's focus on prudent cost management, which is expected to result in BCE achieving discretionary free cash flow positive for 2003 on a consolidated basis. These strengths are somewhat offset by marginal erosion
