The ratings on Canada's second-largest, diversified telecommunications provider are driven by Telus' leading market-share position for local telephone services in western Canada and eastern Quebec; increasing free cash flows generated by growth in the company's wireless and consumer data businesses; and lower expenses from workforce reductions in the company's wireline business. The company's financial profile is average, characterized by a moderate level of debt. Credit metrics are expected to improve as the company continues to reduce debt from free cash flows. The ratings on Telus are supported by its continued leadership position in the provinces of Alberta and British Colombia, as well as eastern Quebec, given its dominant market share for fixed-line operations, as well as continued growth in wireless
