Research Update: MEG Energy Corp. Downgraded To 'B+' From 'BB-' On Lower-Than-Expected Profitability; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: MEG Energy Corp. Downgraded To 'B+' From 'BB-' On Lower-Than-Expected Profitability; Outlook Negative

Research Update: MEG Energy Corp. Downgraded To 'B+' From 'BB-' On Lower-Than-Expected Profitability; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: MEG Energy Corp. Downgraded To 'B+' From 'BB-' On Lower-Than-Expected Profitability; Outlook Negative
Published Feb 14, 2019
10 pages (3345 words) — Published Feb 14, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On Feb. 14, 2019, S&P Global Ratings lowered its long-term issuer credit rating on MEG Energy Corp. to 'B+' from 'BB-'. In conjunction with the downgrade, we also lowered our issue-level rating on MEG's senior secured debt to 'BB' from 'BB+'. The recovery rating is unchanged at '1', indicating our expectation of estimated capped recovery of 95%. With the rating moving into the 'B' category, we now cap the recovery rating on the senior unsecured debt at '2' (previously capped at '3' for 'BB' category ratings). As a result, we affirmed our 'BB-' issue-level rating on the company's senior unsecured debt. We removed all ratings from CreditWatch, where they were placed with positive implications Oct. 2, 2018, when Husky Energy

  
Brief Excerpt:

...+ On Feb. 14, 2019, S&P Global Ratings lowered its long-term issuer credit rating on MEG Energy Corp. to 'B+' from '##-'. + In conjunction with the downgrade, we also lowered our issue-level rating on MEG's senior secured debt to '##' from '##+'. The recovery rating is unchanged at '1', indicating our expectation of estimated capped recovery of 95%. + With the rating moving into the 'B' category, we now cap the recovery rating on the senior unsecured debt at '2' (previously capped at '3' for '##' category ratings). As a result, we affirmed our '##-' issue-level rating on the company's senior unsecured debt. + We removed all ratings from CreditWatch, where they were placed with positive implications Oct. 2, 2018, when Husky Energy Inc. announced an unsolicited bid to acquire MEG. + The negative outlook reflects the risk that MEG's forecast cash flow metrics could deteriorate below the levels we are estimating, if West Texas Intermediate prices or the Western Canadian Select differential...

  
Report Type:

Research Update

Ticker
557089Z@CN
Issuer
MEG Energy Corp.
GICS
Oil & Gas Exploration & Production (10102020)
Sector
Global Issuers, Structured Finance
Country
Canada
Region
Canada
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: MEG Energy Corp. Downgraded To 'B+' From 'BB-' On Lower-Than-Expected Profitability; Outlook Negative" Feb 14, 2019. Alacra Store. May 23, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-MEG-Energy-Corp-Downgraded-To-B-From-BB-On-Lower-Than-Expected-Profitability-Outlook-Negative-2167346>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: MEG Energy Corp. Downgraded To 'B+' From 'BB-' On Lower-Than-Expected Profitability; Outlook Negative Feb 14, 2019. New York, NY: Alacra Store. Retrieved May 23, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-MEG-Energy-Corp-Downgraded-To-B-From-BB-On-Lower-Than-Expected-Profitability-Outlook-Negative-2167346>
  
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