DBRS Morningstar Assigns A (low) Ratings with Negative Trends to Suncor Energy Inc.’s Offering of USD Notes and CAD Medium-Term Notes

DBRS Limited (DBRS Morningstar) assigned ratings of A (low) with Negative trends to Suncor Energy Inc.’s (Suncor Energy or the Company) offering of CAD 500 million 3.95% Medium-Term Notes due 2051 and the Company’s offering of USD 750 million 3.75% Notes due 2051. DBRS Morningstar notes that the Company plans to use the net proceeds from the offerings to repay outstanding commercial paper balances and for general corporate purposes. The offerings have no impact on Suncor Energy’s credit ratings. The ratings being assigned are based upon the rating on already-outstanding series of the above-mentioned debt instrument.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is Rating Companies in the Oil and Gas and Oilfield Services Industries (August 17, 2020; https://www.dbrsmorningstar.com/research/365808/rating-companies-in-the-oil-and-gas-and-oilfield-services-industries), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 2, 2020; https://www.dbrsmorningstar.com/research/369167), DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (March 10, 2020; https://www.dbrsmorningstar.com/research/357788) DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 14, 2021; https://www.dbrsmorningstar.com/research/372344), and DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

For more information regarding rating methodologies and the Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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