(Bloomberg) -- 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. 

Those liabilities will play out over years, but were about C$9.1 billion ($6.27 billion) as of the end of 2023, according to S&P, on a discounted basis and after taxes. Combining the obligations with the company’s conventional debt “significantly weakens Suncor’s credit ratios relative to peers,” S&P said. 

S&P cut Suncor to BBB-. Moody’s Ratings grades the company at Baa1, or two notches higher. Fitch’s rating of BBB+ is equivalent to the Moody’s level.     

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