On July 25, 2008, Standard&Poor's Ratings Services raised its long-term corporate credit rating on Calgary, Alta.-based MEG Energy Corp. (MEG) to 'BB-' from 'B+', and first-lien bank loan ratings to 'BB+' from 'BB', following a review of the company's current and prospective business risk and financial risk profiles The outlook is stable. The ratings on MEG reflect the company's lack of meaningful internal cash flow generation until Phase II of its Christina Lake project begins producing, execution risk of bringing its projects online; and its exposure to heavy oil differentials once production begins. The above-average reserve life index (RLI) of MEG's oil sands leases, and the expected stable production profile with negligible finding costs associated with oil sands
