TORONTO (Standard&Poor's) March 8, 2011--Standard&Poor's Rating Services today said it assigned its 'BB' issue-level rating and '3' recovery rating to Calgary, Alta.-based MEG Energy Corp.'s proposed US$500 million senior unsecured debt issue due 2021. At the same time, Standard&Poor's affirmed its 'BBB-' issue-level rating on the company's existing senior secured debt. The '1' recovery rating on the secured debt is unchanged, indicating our expectation of very high (90%-100%) recovery in a default scenario. Although our estimated enterprise value at the time of default provides significant recovery prospects for MEG's existing and proposed debt, our recovery rating criteria caps our rating on senior unsecured debt for issuers in the 'BB' rating category at '3', a
