The ratings on Vancouver-based Telus Corp., Canada's second-largest, diversified telecommunications provider, reflect the company's strong business risk profile, given Telus' large and expanding nationwide wireless operations and its still-dominant position as the incumbent local telephone service provider in western Canada and eastern Quebec. The ratings are also supported by the company's conservative debt leverage, strong cash flow protection measures, and healthy liquidity. Tempering factors include a shareholder-friendly financial policy, which precludes debt reduction; management's willingness to pursue strategic acquisitions; the prospect of increased wireless competition in the medium term; and high capital expenditures in its wireline and wireless operations. Telus is a major provider of wireless services nationwide, with a 28% subscriber market share; wireless accounts for about 47% of
