The ratings reflect Telus Corp.'s solid business position as Canada's leading wireless operator and the leading provider of telecommunications services in Western Canada; strong stable cash flows, particularly from a solid wireline segment (74% of total revenues for the quarter ended June 30, 2001); experienced management and its success to date in achieving many of its business targets, including the rationalization of the mobile network, distribution, and rebranding; and year-to-date proceeds of more than C$1.0 billion from the divestiture of noncore assets. These factors are tempered by an aggressive financial risk profile reflected in a relatively high amount of debt in the capital structure, albeit softened somewhat by reduced refinancing risk in the short term. The ratings are driven by
