Telus Corp.

The stable outlook reflects the company's improving earnings profile based on its operations in the competitive-but-stable Canadian telecom environment. We believe Telus' adjusted debt-to-EBITDA ratio will remain close to 3x, due to upcoming spectrum auctions. The ratings and outlook place significant emphasis on Telus' plans to protect credit quality and we expect the company will address any near-term additional investment needs without stressing its balance sheet. We could lower the rating if Telus' adjusted debt-to-EBITDA ratio remains above 3.25x (a revision from our previous threshold of 3.00x), with poor prospects for deleveraging. Such a scenario could occur if the company adopts more aggressive shareholder return-of-capital policies, pursues a major debt-funded acquisition or investment, or if its revenue and free cash

...Telus Corp. will continue to maintain its robust wireless market position. Telus Corp. is one of the three largest incumbent telecom players in Canada, holding the No. 3 position in terms of wireless revenue, EBITDA, and subscriber base. A strong brand awareness combined with a solid market position is supported by a customer base of 9.9 million, of which 8.55 million are mobile. With about 67% of the cash flows coming from wireless and a substantial wireless subscriber market share of about 30%, we expect Telus' wireless growth to continue on this positive trend. Even though growth in the short term is limited by intense competition, the rollout of 5G wireless services, backed by wireless spectrum acquisitions and the rollout of the company's fiber network should lead to significant growth in the long term. Telus' future growth supported by significant heavy capital investment. S&P Global Ratings expects significant growth in Telus' wireline segment, with FTTH reaching about 70% of its...

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