Fitch rates Telus notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Telus Corp.'s offering of C$500 million 3.35% senior unsecured notes due 2023.

The proceeds will be used to repay the outstanding commercial paper.

The company's issuer default rating is BBB+ and the outlook is stable.

The ratings reflect the stability of the company's diversified operations, its position as one of the three principal national wireless operators in the Canadian market and its leading market position as a local wireline operator in Western Canada and Eastern Quebec, Fitch said.

An important consideration in the rating is the strong performance of the wireless business, which continues to generate solid growth in revenues, EBITDA and simple free cash flow, the agency said.

Concerns include the continued competition from other wireless operators, Fitch said, as well as ongoing pressure on wireline voice revenues.

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