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FOR: HUSKY ENERGY INC.

TSX SYMBOL:
 HSE

Husky Energy announces ratings upgrade from Standard & Poor's

Jul 27, 2006 - 11:59 ET

CALGARY--(CCNMatthews - July 27) - Mr. John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc., announced today that Standard & Poor's Rating Services, a global credit rating agency, has raised the Company's long-term corporate credit and senior unsecured debt ratings from BBB to BBB+ with a stable outlook.

In upgrading the long-term rating, Standard & Poor's based its decision on Husky's recent start of production at White Rose and the Company's very good internal growth prospects, competitive full cycle cost profile and consistently moderate financial risk profile.

"We are pleased that Standard & Poor's has recognized the Company's strong financial and operational performance," said Mr. Lau. "By maintaining our focus on financial discipline, together with strong oil prices and growth in Husky's high-quality diversified asset portfolio, we believe the Company's financial and operational performance will continue to improve."

Husky Energy is a Canadian based, integrated energy and energy-related company headquartered in Calgary, Alberta. Husky Energy is publicly traded on the Toronto Stock Exchange under the symbol HSE.

Certain statements contained in this news release constitute forward looking statements or information (collectively, "forward looking statements") within the meaning of applicable securities legislation. These forward looking statements relate to future events or Husky's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward looking statements and are based on Husky's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Husky's annual report to shareholders and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com and the EDGAR website www.sec.gov) describe the risks, uncertainties and other factors, such as drilling results, changes in business plans and potential delays or changes in plans with respect to development projects or capital expenditures, that could influence actual results. Except as required by law, Husky disclaims any intention or obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.



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