TORONTO (Standard&Poor's) Sept. 26, 2013--Standard&Poor's Rating Services today said it assigned its 'BB' issue-level rating and '3' recovery rating to MEG Energy Corp.'s proposed US$750 million senior unsecured debt issue. A '3' recovery rating represents our expectation of meaningful (50%-70%) recovery for bondholders in a default scenario. "Given the substantial default scenario enterprise value we estimate for MEG, we believe the incremental debt proposed will benefit from the same recovery prospects we estimate for the company's current senior unsecured debt," said Standard&Poor's credit analyst Michelle Dathorne. Consistent with MEG's established financing policies, we expect proceeds from this bond issue, in addition to those provided by recent debt and equity issues, will fund the company's
