The ratings on Telus Corp., Canada's second-largest, diversified telecommunications provider, are driven by the company's average financial risk profile characterized by moderate leverage and cash flow protection measures. In addition, the ratings are underpinned by an above-average business profile given the company's large and expanding nationwide wireless business and its dominant position as the local telephone service provider in western Canada and eastern Quebec. The potential for a labor disruption in the near-term is not a material concern at the current rating level, given Telus' level of cash flow generation and cash balances. At March 31, 2005, Telus' lease-adjusted debt was C$8.3 billion. A combination of lower debt and strong EBITDA growth has resulted in a lease-adjusted debt to EBITDA
