BELL ALIANT INC. $28 (Toronto symbol BA: Shares outstanding: 227.8 million; Market cap: $6.4 billion; TSINetwork Rating: Average; Yield: 6.8%; www.aliant.ca) sells telephone and Internet services to 2.8 million customers in Atlantic Canada, as well as rural parts of Ontario and Quebec. The company also sells wireless services through an alliance with BCE, which owns 43.8% of Bell Aliant.
We’re lowering Bell Aliant’s TSINetwork Rating to Average from Above Average. It’s still prominent in its industry, with a record of steady profits and dividends, and its balance sheet remains strong. But it faces rising competition across all of its businesses. In addition, many of its phone customers are switching to wireless devices—owning a telephone land line is becoming less and less of a habitual behaviour for many Canadians.
Bell Aliant is still a buy.
