Moody's also believes Telus will have a negative free cash flow this year and likely next. Moody's said its outlook for Telus is negative, as it sees possible problems with the company's restructuring and business plans. "The company may have little flexibility to react to adverse developments, as it has already reduced its dividend, has few significant non-strategic assets available to sell, and is quickly moving to a maintenance level of capital expenditures," Moody's said. Telus fired back at Moody's after markets closed on Thursday, calling the debt rating downgrade "unwarranted". "Three other credit agencies Standard & Poors, Dominion Bond Rating Service and Fitch Ratings who were provided with the same information, issued decisions this month rating TELUS' debt at two notches above Moody's, reaffirming our investment grade ratings," Robert McFarlane, Telus' executive vice president and chief financial officer, said.