We are placing all of our ratings on MEG Energy Corp. on CreditWatch with positive implications, following Husky Energy Inc.'s (BBB+/Watch Neg/--) announced unsolicited offer to acquire the company. The potential upgrade would extend to the company's rated debt outstanding, with both ratings on its secured and unsecured debt being raised to the same level as the issuer credit rating. The recovery ratings on MEG's senior secured and senior unsecured debt are unchanged at '1' and '3', respectively, until the transaction closes. The positive CreditWatch placement reflects our view that we would likely assess MEG as a core entity for Husky, and would equalize our ratings on MEG's rated debt with those on Husky. On Oct. 1, 2018, S&P Global
