On Sept. 13, 2006, Standard&Poor's Ratings Services affirmed its 'BBB+' ratings on western Canada-based telecommunications service provider Telus Corp. (Telus), following the company's announcement that it will convert to an income trust. At the same time, Standard&Poor's affirmed its ratings on subsidiary Telus Communications Inc. (TCI). The conversion is subject to Telus majority shareholder and other regulatory approvals, and is expected to close in late January 2007. The outlook is stable. Standard&Poor's views Telus' trust conversion as having a neutral-to-modestly negative credit impact overall on the ratings. The affirmation is based on the expectation that Telus' capital structure will remain largely unchanged, with debt leverage and corresponding credit metrics remaining consistent with current levels.
