The long-term corporate credit rating on Montreal, Que.-based telecommunications holding company BCE Inc. (BCE) reflects the consolidated credit risk of its various operating subsidiaries, but primarily that of its wholly owned subsidiary, Bell Canada (A-/Negative/A-2), which generates more than 90% of the company's consolidated revenues and operating income. The ratings are supported by the strong business profile of Bell Canada, which is the largest and most diverse telecommunications provider in Canada. The consolidated financial risk profile for BCE remains above average; planned debt reduction in 2006 is expected to result in credit measures consistent with the current rating level. The negative outlook reflects concerns of increased competition in local access and long-distance services, primarily from cable TV operators accelerating their
