Bulletin: EQT Midstream Partners' Credit Quality Is Not Materially Impacted By Higher Pipeline Costs

NEW YORK (S&P Global Ratings) Sept. 25, 2018--S&P Global Ratings said today that it does not expect EQT Midstream Partners L.P. (EQM) will experience significant diminishment of credit quality as a result of the $900 million project cost increase at Mountain Valley Pipeline LLC (MVP). In our view, the cost increase is mildly credit negative for EQM as it increases their cash requirements for MVP construction. However, EQM previously announced the completion of the pipeline would be delayed to the fourth quarter of 2019, and we believe this delay offsets the cost increase as the elevated leverage associated with EQM's contributions required for MVP are spread over a greater period of time. While EQM's average leverage is higher than previously

...NEW YORK (S&P Global Ratings) Sept. 25, 2018--S&P Global Ratings said today that it does not expect EQT Midstream Partners L.P. (EQM) will experience significant diminishment of credit quality as a result of the $900 million project cost increase at Mountain Valley Pipeline LLC (MVP). In our view, the cost increase is mildly credit negative for EQM as it increases their cash requirements for MVP construction. However, EQM previously announced the completion of the pipeline would be delayed to the fourth quarter of 2019, and we believe this delay offsets the cost increase as the elevated leverage associated with EQM's contributions required for MVP are spread over a greater period of time. While EQM's average leverage is higher than previously forecast, we do not anticipate sustained leverage above our downgrade trigger of 4.5x. We will further update our leverage forecast in the fourth quarter of 2018 when EQM's capital budget is available. EQM is the primary interest owner and will be...

Bulletin