Page 80 - AIF - English

DESCRIPTION OF CAPITAL STRUCTURE

S&P credit ratings on long-term debt are on a rating scale DBRS’s credit ratings on commercial paper are on a

that ranges from AAA to D, representing the range of such short-term debt rating scale that ranges from R-1 (high) to
securities rated from highest to lowest quality. A rating of D, representing the range of such securities rated from

BBB by S&P is the fourth highest of 10 categories and highest to lowest quality. A rating of R-1 (low) by DBRS is
indicates that the obligor had adequate capacity to meet the third highest of 10 categories and is assigned to debt

its financial commitments. However, adverse economic securities considered to be of good credit quality. The
conditions or changing circumstances are more likely to capacity for the payment of short-term financial obligations

lead to a weakened capacity of the obligor to meet its as they become due is substantial, with overall strength not
financial commitment on the obligation. The addition of a as favourable as higher rating categories. Entities in this

plus (+) or minus (-) designation after the rating indicates category may be vulnerable to future events, but qualifying
the relative standing within a particular rating category. negative factors are considered manageable. The R-1 and

S&P credit ratings on commercial paper are on a short-term R-2 commercial paper categories are denoted by (high),
debt rating scale that ranges from A-1 to D, representing (middle) and (low) designations.

the range of such securities rated from highest to lowest Moody’s credit ratings are on a long-term debt rating scale
quality. A Canadian rating by S&P of A-1 (low) is the third
highest of eight categories and a US rating of A-2 is the that ranges from Aaa to C, which represents the range
from highest to lowest quality of such securities rated. A
second highest of six categories, indicating a slightly higher rating of Baa by Moody’s is the fourth highest of nine
susceptibility to the adverse effects of changes in
categories. Obligations rated Baa are subject to moderate
circumstances and economic conditions, although the credit risk. They are considered medium grade and, as
obligor’s capacity to meet its financial commitment on the
such, may possess certain speculative characteristics. For
obligation is satisfactory.
certain ratings, Moody’s appends numerical modifiers 1, 2

DBRS credit ratings on long-term debt are on a rating scale or 3 to each generic rating classification. The modifier
that ranges from AAA to D, representing the range of such 1 indicates that the obligation ranks in the higher end of

securities rated from highest to lowest. A rating of A by its generic rating category; the modifier 2 indicates a
DBRS is the third highest of 10 categories and is assigned mid-range ranking; and the modifier 3 indicates a ranking

to debt securities considered to be of good credit quality, in the lower end of that generic rating category. A rating
with the capacity for the payment of financial obligations of P-2 by Moody’s for commercial paper is the second

being substantial, but of a lesser credit quality than an AA highest of four rating categories and indicates a strong
rating. Entities in the A category may be vulnerable to ability to repay short-term obligations.

future events, but qualifying negative factors are Suncor has paid each of S&P, DBRS and Moody’s their
considered manageable. All rating categories other than
customary fees in connection with the provision of the
AAA and D also contain designations for (high) and (low). above ratings. Suncor has not made any payments to S&P,
The absence of either a (high) or (low) designation
DBRS or Moody’s in the past two years for services
indicates the rating is in the middle of the category. The unrelated to the provision of such ratings.
assignment of a (high) or (low) designation within a rating

category indicates relative standing within that category.

78 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014