Vancouver-based diversified communications provider Telus Corp. spent C$1.95 billion in the 3.5 GHz spectrum auction. In addition to debt, we expect Telus will explore alternative financing options to fund the investment. We now project Telus' 2021 leverage will remain elevated, but improve to about 3.2x-3.3x over the next two years, reflecting strong revenue and EBITDA growth offsetting infrastructure investments and cash dividends spend. As a result, on Sept. 22, 2021, S&P Global Ratings affirmed its 'BBB+' issuer credit and issue-level ratings on Telus. The company's short-term rating is unchanged at 'A-2'. The negative outlook reflects the potential for a downgrade should Telus' leverage deteriorate above 3.25x for a sustained period due to operational underperformance or a decision to fund ongoing
