Fitch rates EQT notes BBB-

Fitch Ratings said it affirmed EQT Midstream Partners, LP’s BBB- issuer default rating and senior unsecured rating and assigned a BBB- senior unsecured rating to a proposed issuance of senior unsecured notes.

Proceeds are for general corporate purposes, including repayment of a term loan and the repayment of a credit facility for a company EQT agreed to purchase.

The outlook is stable.

Fitch said the BBB- rating reflects the credit quality of EQT's largest customer, EQT Corp. (issuer default rating BBB-/stable), long-term contracts featuring capacity reservation payments and an operating territory in the leading natural gas producing region in the U.S.

Rating concerns consist of acquisition integration risk, construction risk, high guidance rate for per unit distribution growth and risk concerning achieving standalone execution ability given the expected severing of the ownership relationship with EQT, the agency explained.

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