DBRS Morningstar Assigns Rating of BBB (high) With Stable Trend to TELUS Corporation’s Debt Issuance

DBRS Limited (DBRS Morningstar) 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 Morningstar) $500 million 4.100% Notes, Series CAE due 2051, which closed on April 5, 2021. The rating being assigned is based upon the rating on already-outstanding series of the above-mentioned debt instrument.

The net proceeds will be used to repay the holders upon maturity of the Series 3, 10.65% debentures of its subsidiary Telus Communications Inc. (TCI) due June 2021 (debentures rated BBB (high), Stable by DBRS Morningstar), the repayment of commercial paper (incurred for general working capital purposes), and for general corporate purposes.

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

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

The principal methodologies are Rating Companies in the Communications Industry (July 30, 2020, https://www.dbrsmorningstar.com/research/364691), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 2, 2020, https://www.dbrsmorningstar.com/research/369167), DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (March 9, 2021, https://www.dbrsmorningstar.com/research/375001), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 14, 2021, https://www.dbrsmorningstar.com/research/372344), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

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