S&P Global Ratings downgraded EQM Midstream Partners LP's issuer credit rating and issue rating on its senior unsecured debt to BB- from BB with a negative outlook, in line with its lowered rating on the partnership's main customer EQT Corp.
Ratings based the downgrade on deteriorating counterparty credit quality at EQM Midstream, given that the partnership depends on EQT for about 70% of its revenues, Ratings said in an April 7 news release.
The rating agency downgraded shale gas giant EQT to BB- on April 1 to reflect the expectation that its credit measures will be below expectations over the next two years under its lowered oil and gas price assumptions.
The rating agency said it could further lower its ratings on EQM Midstream if it lowered the ratings on EQT. Alternatively, Ratings will revise EQM Midstream's outlook to stable if it did the same action at EQT.
This S&P Global Market Intelligence news article contains information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.