Moody's boosts MEG

Moody's Investors Service said it upgraded MEG Energy Corp.'s corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD and senior unsecured (foreign) notes rating to B1 from B2. The outlook was changed to stable from positive. The speculative grade liquidity rating remains SGL-1.

"The upgrade reflects strong cash flow generation supporting debt reduction and solid credit metrics through 2024 at mid-cycle prices," said Whitney Leavens, a Moody's analyst, in a press release.

"MEG also benefits from low production costs, a long-lived reserve base and very good liquidity."

Moody’s said the outlook reflects a forecast for 2024 financial leverage improving through debt reduction with some increases in production.

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