We are raising our long-term corporate credit rating on MEG Energy to 'BB' from 'BB-'. We are raising our senior secured issue level ratings to 'BBB-' from 'BB+'. The '1' recovery ratings on the company's term loans and senior secured revolving credit facility are unchanged. In our view, the company's ability to attract equity financing for its steam-assisted gravity drainage (SAGD) development projects has kept its capital structure under-levered relative to many other SAGD focused upstream companies, which, in our view, has strengthened its overall credit profile. On Oct. 19, 2010, Standard&Poor's Ratings Services raised its long-term corporate credit rating on MEG Energy Corp. to 'BB' from 'BB-' based on the company's successful track record with project execution
