Suncor to Buy Back Debt After Oil Drop, Ratings Downgrade

Suncor Energy Inc. is pushing ahead with a bond buyback as oil prices near this year’s lows amid recession worries, Bloomberg News reported. Calgary-based Suncor plans to buy up to C$1.75 billion ($1.27 billion) of securities from 10 series of outstanding notes in US and Canadian dollars, the company said in a statement Monday. Cenovus Energy Inc., another large Canadian oil company, did a similar offer earlier this month. Suncor is going ahead with the tender weeks after S&P Global Ratings downgraded the company for a second time in less than three years as the ratings firm tightens credit ratio thresholds for Canadian oil companies, citing their more-volatile operating performance than North American peers. The per-barrel price of Brent crude slipped below $85 on Monday, and West Texas Intermediate fell below $80. Read more.