Sunoco 2014 Annual Report Download - page 30

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We do not have the same flexibility as other types of organizations to accumulate cash, which may limit cash available to
service our debt or to repay debt at maturity.
Our partnership agreement requires us to distribute 100 percent of our available cash to our general partner and Sunoco
Logistics Partners L.P. within 45 days following the end of every quarter. The Sunoco Logistics Partners L.P. partnership
agreement requires it to distribute 100 percent of its available cash to its unitholders of record within 45 days following the end
of every quarter. Available cash with respect to any quarter is generally all of our or Sunoco Logistics Partners L.P.'s, as
applicable, cash on hand at the end of such quarter, less cash reserves for certain purposes. The controlling owner of our
general partner and the board of directors of Sunoco Logistics Partners L.P.'s general partner will determine the amount and
timing of such distributions and have broad discretion to establish and make additions to our or Sunoco Logistics Partners L.P.'s
reserves, as applicable, or the reserves of our or Sunoco Logistics Partners L.P.'s operating subsidiaries, as applicable, as they
determine are necessary or appropriate. As a result, we and Sunoco Logistics Partners L.P. do not have the same flexibility as
corporations or other entities that do not pay dividends or that have complete flexibility regarding the amounts they will
distribute to their equity holders. Although our payment obligations to our partners are subordinate to our payment obligations
on our debt, the timing and amount of our quarterly distributions to our partners could significantly reduce the cash available to
pay the principal, premium (if any), and interest on our notes.
Rising short-term interest rates could increase our financing costs and reduce the amount of cash we generate.
As of December 31, 2014, we had $185 million of floating-rate debt outstanding. Rising short-term rates could materially
and adversely affect our results of operations, financial condition or cash flows.
Any reduction in our credit ratings or in ETP's credit ratings could materially and adversely affect our business, results of
operations, financial condition and liquidity.
We currently maintain an investment grade rating by Moody's, S&P and Fitch Ratings. However, our current ratings may
not remain in effect for any given period of time and a rating may be lowered or withdrawn entirely by a rating agency if, in its
judgment, circumstances in the future so warrant. If Moody's, S&P or Fitch Ratings were to downgrade our long-term rating,
particularly below investment grade, our borrowing costs could significantly increase, which would adversely affect our
financial results, and our potential pool of investors and funding sources could decrease. Further, due to our relationship with
ETP, any downgrade in ETP's credit ratings could also result in a downgrade in our credit ratings. Ratings from credit agencies
are not recommendations to buy, sell or hold our securities, and each rating should be evaluated independently of any other
rating.