S&P Downgrades Suncor to Just Above Junk as Oil Prices Weaken
Tanks at the Suncor Energy facility in Port Moody, British Columbia.
Photographer: James MacDonald/BloombergThis article is for subscribers only.
Canadian oil company Suncor Energy Inc’s long-term credit rating was cut one notch to a step above junk by S&P Global Ratings, as lower energy prices threaten the energy firm’s revenue.
Suncor’s revenue will probably decline about 10% next year, hurt by lower oil prices and subdued refining profits, S&P said in a statement. The company also faces relatively large future costs associated with retiring oilsands operations when they reach the end of their lives, known as asset retirement obligations.