The ratings on Alberta-based Telus Corp., Canada's second-largest, diversified telecommunications provider, are driven by the company's improved financial risk profile characterized by modest leverage and strong cash flow protection measures. In addition, the ratings benefit from the company's strong business profile, given Telus' large and expanding nationwide wireless business and its dominant position as the local telephone service provider in western Canada and eastern Quebec. Telus reduced total lease-adjusted debt by about C$800 million in 2005 to C$7.1 billion. This, coupled with strong EBITDA and cash flow growth, resulted in a material improvement in leverage and other key credit measures in 2005. Lease-adjusted debt to EBITDA declined to about 2.1x for 2005, from 2.6x in 2004. In December 2005, Telus
