Moody's rates MEG notes Ba1, ups notes, loans

Moody's Investors Service said it assigned a B1 rating to MEG Energy Corp.'s proposed $700 million senior unsecured notes due 2023.

Moody's also upgraded the C$750 million senior unsecured notes due 2021 to B1 from B2 and the senior secured term loan and revolving credit facility to Ba1 from Ba2.

The Ba3 corporate family rating was affirmed. The speculative grade liquidity rating was changed to SGL-2 from SGL-1.

The outlook remains stable.

Moody's said that a substantial portion of proceeds from the notes will be used to finance MEG's infill well project and to advance engineering and procurement for Christina Lake Phase 3A, with the balance used for infrastructure projects.

The infill well program will significantly increase production from Phases 1, 2A, and 2B and improve overall economics, the agency said.

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