EQM Midstream Partners L.P. Outlook Revised To Negative; 'BBB-' Rating Affirmed

Pittsburgh-based midstream partnership EQM Midstream Partners L.P.'s leverage continues to be pressured by a construction delay of the Mountain Valley Pipeline (MVP) and a significant increase in its cost. MVP's in-service date is uncertain due to regulatory challenges facing the project, but has already been delayed about 12 months. As a result, we affirmed our 'BBB-' issuer rating and revised the outlook to negative from stable. At the same time, EQM announced the acquisition of Eureka and Hornet Midstream Holdings from Morgan Stanley Infrastructure Fund for $1.03 billion. While we view the bolt-on transaction as supportive of credit, it does not offset the increased risk at MVP. The negative outlook reflects the risk that further delays and increased costs on

...+ Pittsburgh-based midstream partnership EQM Midstream Partners L.P.'s leverage continues to be pressured by a construction delay of the Mountain Valley Pipeline (MVP) and a significant increase in its cost. MVP's in-service date is uncertain due to regulatory challenges facing the project, but has already been delayed about 12 months. + As a result, we affirmed our '###-' issuer rating and revised the outlook to negative from stable. + At the same time, EQM announced the acquisition of Eureka and Hornet Midstream Holdings from Morgan Stanley Infrastructure Fund for $1.03 billion. While we view the bolt-on transaction as supportive of credit, it does not offset the increased risk at MVP. + The negative outlook reflects the risk that further delays and increased costs on MVP could keep leverage high and pressure credit measures. NEW YORK (S&P Global Ratings) March 22, 2019-- S&P Global Ratings today took the rating actions listed above. The negative outlook reflects uncertainty around the...

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