Telus 2008 Annual Report Download - page 39

Institution Rating Outlook
are still respectable. Any qualifying
negative factors that exist are
considered manageable, and the
entity is normally of sufficient size to
have some influence in its industry.
S&P An obligator rated ‘BBB’ exhibits
adequate protection parameters.
However, adverse economic
conditions or changing
circumstances are more likely to
lead to a weakened capacity of the
obligor to meet its financial
commitments.
The ratings from ‘AA’ to ‘CCC’ may
be modified by the addition of a plus
or minus sign to show relative
standing within the major rating
categories.
Rating outlooks assess the potential
direction of a long term credit rating over
the intermediate term (typically six months
to two years). An outlook is not
necessarily a precursor to a rating change
or CreditWatch placement. Outlooks may
be positive, negative, stable, or
developing and they accompany all long-
term credit ratings except those on
CreditWatch.
Moody’s Obligations rated “Baa” are subject
to moderate credit risk. They are
considered medium-grade and as
such may possess certain
speculative characteristics.
Moody's appends numerical
modifiers 1, 2, and 3 to each generic
rating classification from ‘Aa’ through
‘Caa’. The modifier 1 indicates that
the obligation ranks in the higher
end of its generic rating category;
the modifier 2 indicates a mid-range
ranking; and the modifier 3 indicates
a ranking in the lower end of that
generic rating category.
Moody's also provides a rating outlook
which is an opinion regarding the likely
direction of a rating over the medium term.
Where assigned, rating outlooks fall into
the following four categories: Positive
(POS), Negative (NEG), Stable (STA),
and Developing (DEV -- contingent upon
an event.
Ratings Under Review (RUR) designation
indicates that the issuer has one or more
ratings under review for possible change,
and thus overrides the outlook
designation.
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