Fitch cuts EQM Midstream, Equitrans

Fitch Ratings said it downgraded EQM Midstream Partners, LP’s long-term issuer default rating and senior unsecured debt to BB from BBB-, and assigned a recovery rating of RR4 to EQM’s unsecured notes. In addition, Fitch downgraded Equitrans Midstream Corp.’s long-term IDR to B+ from BB and its senior secured term loan B to B/ RR5 from BB/ RR2. The outlook remains negative.

EQM’s downgrade and negative outlook reflect the negative rating actions at EQT Corp., EQM’s largest counterparty. EQT’s long-term IDR was downgraded to BB, reflecting the negative effects of lower-for-longer natural gas prices on EQT’s credit profile, including increased execution risk to the company’s asset sales program and related deleveraging, higher liquidity risks, as well as uncertainties around timing and magnitude of benefits from the renegotiations of midstream fees with Equitrans.

“Today’s rating actions also reflect Fitch’s view that past and potential trends have lowered EQM’s prospects for avoiding a sustained period of high leverage, and continued uncertainties around the Mountain Valley Pipeline (MVP) project execution as it experiences regulatory and environmental challenges with multiple delays and cost overruns. Any further delays will reign in EBITDA and cashflows,” said Fitch in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.