The ratings on Canada's second-largest diversified incumbent telecommunications provider are driven by Telus Corp.'s leading local market-share position in Western Canada and Eastern Quebec, growth in the company's wireless and data businesses, and significant recent cost reductions. In addition, the company benefits from no material near-term debt maturities and ample liquidity under its bank facilities. These strengths are offset by Telus' relatively high debt load for the current ratings, as well as continued negative, albeit improving, cash flows for its non-ILEC (incumbent local exchange carrier) operations in eastern Canada. The impact of the company's operational efficiency program and the combined negative effect on revenue and EBITDA from the contribution, rebanding, and price-cap regulatory rulings have been factored into the ratings
