The ratings on Vancouver-based Telus Corp., Canada's second-largest, integrated telecommunications provider, reflect our view of the company's strong business risk profile, given its large and expanding nationwide wireless operations; still-dominant position as the incumbent local telephone service provider in western Canada and eastern Quebec; and good diversity of revenues among business and residential customers. The ratings are also supported by the company's conservative debt leverage; solid, albeit weakening, cash flow protection measures; and healthy liquidity. Tempering factors in Standard&Poor's Ratings Services' opinion include a shareholder-friendly financial policy, which precludes debt reduction; management's willingness to pursue debt-financed strategic acquisitions; intensifying wireless competition; weakening wireline margins; and high capital expenditures. Telus is a major provider of wireless services in Canada,
