Telus 2015 Annual Report Download - page 30

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30
The Company’s credit ratings are outlined in the chart below. Credit ratings are not
recommendations to purchase, hold or sell securities and do not address the market
price or suitability of a specific security for a particular investor. In addition, real or
anticipated changes in the rating assigned to a security will generally affect the market
value of that security. There can be no assurance that a rating will remain in effect for
any given period of time or that a rating will not be revised or withdrawn entirely by a
rating agency in the future.
Credit rating summary
DBRS Ltd.
Standard
& Poor’s
Rating
Services
Moody’s
Investor
Services
FitchRatings
TELUS Corporation
Notes
BBB (high)
BBB+
Baa1
BBB+
Commercial paper
R-2 (high)
A-2
P-2
—
TELUS Communications Inc.
Debentures
BBB (high)
BBB+
—
BBB+
The following descriptions of the rating categories prepared by the respective rating
agencies (obtained from their public websites) are provided solely to satisfy
requirements of Canadian law and do not constitute an endorsement by TELUS of the
categories or of the application of the respective rating agencies.
Institution
Rating
DBRS
The DBRS® long-term rating scale provides an opinion on the risk of
default. That is, the risk that an issuer will fail to satisfy its financial
obligations in accordance with the terms under which an obligation has been
issued. Ratings are based on quantitative and qualitative considerations
relevant to the issuer, and the relative ranking of claims. All rating
categories, other than AAA and D, also contain subcategories “(high)” and
“(low)”. The absence of either a “(high)” or “(low)”designation indicates the
rating is in the middle of the category. An “A” rating denotes good credit
quality. The capacity for the payment of financial obligations is substantial,
but of lesser credit quality than AA. May be vulnerable to future events, but
qualifying negative factors are considered manageable. Long-term debt
rated “BBB” is of adequate credit quality. The capacity for the payment of
financial obligations is considered acceptable. May be vulnerable to future
events.
The DBRS short-term debt rating scale provides an opinion on the risk that
an issuer will not meet its short-term financial obligations in a timely manner.
Ratings are based on quantitative and qualitative considerations relevant to
the issuer and the relative ranking of claims. The R-1 and R-2 rating
categories are further denoted by the subcategories “(high)”, “(middle)” and
“(low)”. The R-1 (low) rating category denotes good credit quality. The
capacity for the payment of short-term financial obligations as they fall due
is substantial. Overall strength is not as favourable as higher rating
categories. May be vulnerable to future events, but qualifying negative
factors are considered manageable.