S&P cuts Dominion Energy Questar

S&P said it downgraded Dominion Energy Questar Pipeline LLC and its $180 million of 4.875% senior unsecured notes due 2041 to BBB from BBB+ and placed them on CreditWatch with developing implications. The ratings were previously on CreditWatch with positive implications.

Dominion Energy Inc. and Berkshire Hathaway Energy Co. terminated their planned sale of Dominion Energy Questar Pipelines LLC to Berkshire Hathaway Energy because of uncertainty regarding the Federal Trade Commission's approval. Dominion plans to sell the pipeline by the end of the year.

“We revised downward our assessment of DEQP's status within Dominion Energy's group to moderately strategic from core. Our revised assessment of DEQP's group status incorporates Dominion's planned sale of DEQP by year-end and our expectations that in the meantime DEQP will continue to have access to the intercompany agreement, indicative of some level of group support. Our revised assessment of DEQP's group status lowers DEQP's issuer credit rating by one notch,” S&P said in a press release.

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