Lisa,
This is a good question. Honestly, as far as the high school English credit goes, there are no hard fast rules as to what constitutes a credit. Since the areas of literature, composition, and grammar are typically combined to earn the credit, virtually endless combinations are possible.
While it is true that the BJU lit. is 1/2 credit, and the combination of Essentials in Writing and Rod and Staff would equal another 1/2 credit, it is also true that most literature courses utilize at least one or more full-length novels as part of their literature credit. To this end, we have added novels to the BJU literature to both make a stronger credit and to bring a more CM style of literature study into the credit.
Since we are not formally studying those particular novels, but are instead employing the techniques of oral narration, written narration, Common Place Book Entries, etc. with them, in my opinion, the novels function to round out the credit without really pushing it into an honor's level course. Your opinion may vary, and as the parent you could designate it as honor's level on the transcript if desired.
Hope that helps!
Blessings,
Carrie