DBRS Assigns Rating of BBB (high) with a Stable Trend to TELUS Corporation Notes

DBRS Limited (DBRS) assigned a rating of BBB (high) with a Stable trend to TELUS Corporation’s (TELUS or the Company; rated BBB (high) with a Stable trend by DBRS) Series CW Notes due March 6, 2048, and Series CX Notes due March 1, 2028, which were offered on February 26, 2018.

The $750.0 million issuance is made up of the following tranches:
(1) $150.0 million 4.70% Series CW Notes due March 6, 2048
(2) $600.0 million 3.625% Series CX Notes due March 1, 2028

DBRS notes that the Series CW Notes represent a further issuance of the 4.70% Notes due March 6, 2048, previously issued by the Company on March 6, 2017.

The Series CW Notes and Series CX Notes are unsecured and unsubordinated obligations of TELUS, will rank pari passu in right of payment with all existing and future unsecured and unsubordinated obligations of TELUS and will be senior in right of payment to all existing and future subordinated indebtedness of TELUS but will be effectively subordinated to all existing and future obligations of, or guaranteed by, TELUS’s subsidiaries.

TELUS will use the proceeds to repay approximately $725 million of outstanding commercial paper, as well as fund the repayment, on maturity, of a portion of the $250 million aggregate principal amount outstanding on the Company’s 1.50% Series CS Notes due March 27, 2018, and the balance will be used for general corporate purposes.

TELUS’s ratings continue to be supported by the Company’s well-entrenched market position and proven track record of profitable growth. The ratings also reflect intensifying competition, risks associated with regulatory and technological changes and the industry’s capital-intensive nature.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is Rating Companies in the Communications Industry, which can be found on dbrs.com under Methodologies.

This rating is no longer endorsed by DBRS Ratings Limited for use in the European Union.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.