Moody’s lowers Telus view to negative

Moody’s Investors Service said it affirmed Telus Corp.’s Baa1 senior unsecured ratings and changed the outlook to negative from stable.

Moody’s also said it affirmed Telus’s P-2 commercial-paper rating.

The negative outlook reflects constrained financial flexibility through management choice, despite very good operations, Moody’s said.

The agency said it believes Telus may continue to increase dividends proportionately faster than EBITDA and buy back shares despite a lack of free cash flow, the agency said.

The ratings are based on the company’s solid business profile, which includes strong and stable margins, moderately growing cash flow from operations and expectations of adjusted debt-to-EBITDA in the 2.75x to 3x range, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.