Bulletin: Telus Corp.'s Announced Equity Offering Will Not Affect Ratings Or Outlook On The Company

TORONTO (S&P Global Ratings) Feb. 21, 2020--S&P Global Ratings today said it viewed Telus Corp.'s (BBB+/Negative/A-2) Feb. 20, 2020, announcement of an equity offering to be credit positive but not sufficient to revise its negative outlook on the company. The offering, including the over-allotment option, could bring in gross proceeds of C$1.5 billion that the company will use for general corporate purposes including funding growth opportunities, capital expenditures, and reducing debt. Telus exited 2019 with about 3.4x S&P Global Ratings' adjusted debt-to-EBITDA, which was modestly higher than our expectations. While the combination of the equity issuance and savings from the company's discounted dividend reinvestment plan (DDRIP) is significant, it does not provide conviction that the company will meaningfully delever in

...February 21, 2020 TORONTO (S&P Global Ratings) Feb. 21, 2020--S&P Global Ratings today said it viewed Telus Corp.'s (###+/Negative/A-2) Feb. 20, 2020, announcement of an equity offering to be credit positive but not sufficient to revise its negative outlook on the company. The offering, including the over-allotment option, could bring in gross proceeds of C$1.5 billion that the company will use for general corporate purposes including funding growth opportunities, capital expenditures, and reducing debt. Telus exited 2019 with about 3.4x S&P Global Ratings' adjusted debt-to-EBITDA, which was modestly higher than our expectations. While the combination of the equity issuance and savings from the company's discounted dividend reinvestment plan (DDRIP) is significant, it does not provide conviction that the company will meaningfully delever in the near term. With the recent Competence Call Center acquisition and equity offering, we now forecast Telus' 2020 debt-to-EBITDA in the 3.10x-3.15x...

Bulletin