Moody's: MEG Energy loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to MEG Energy Corp.'s $1 billion senior secured revolver.

The agency also said it affirmed its B1 corporate family and probability of default ratings, Ba3 rating on its $1 billion senior secured term loan rating and B3 rating on its $750 million senior unsecured notes rating.

The revolver is being increased from $500 million and extended a year to 2017 and this will bolster the company's liquidity.

The speculative-grade liquidity rating of SGL-1 is unchanged.

The outlook is stable.

The ratings reflects the company's production levels and significant cash position, which along with cash flow should enable MEG to substantially construct and commission phase 2B of the Christina Lake oil sands property, Moody's said.

The rating also considers a high debt level, the execution risk of constructing and ramping up phase 2B to targeted levels through 2014 and MEG's relatively small production base, the agency said.

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