EQM Midstream Partners LP Rating Affirmed As Strengthening Cash Flow Offsets Deleveraging Delays; Outlook Stable

U.S. based master limited partnership (MLP) EQM Midstream Partners LP (previously EQT Midstream Partners LP) has completed its spin-off from upstream parent EQT Corp. Additionally, EQM has completed the acquisition of Rice Midstream Partners in addition to other midstream assets from EQT Corp. In September, EQM announced cost overruns and in-service delays at Mountain Valley Pipeline, resulting in higher than previously forecasted leverage in 2019. We believe EQM's improved scale and cash flow profile will support the current ratings despite the delay in deleveraging. We are affirming our 'BBB-' issuer credit and senior unsecured debt ratings on the partnership. The stable outlook on EQM reflects approximately 54% of revenues backed by firm commitments. We expect S&P adjusted leverage of approximately

...+ U.S. based master limited partnership (MLP) EQM Midstream Partners LP (previously EQT Midstream Partners LP) has completed its spin-off from upstream parent EQT Corp. Additionally, EQM has completed the acquisition of Rice Midstream Partners in addition to other midstream assets from EQT Corp. + In September, EQM announced cost overruns and in-service delays at Mountain Valley Pipeline, resulting in higher than previously forecasted leverage in 2019. We believe EQM's improved scale and cash flow profile will support the current ratings despite the delay in deleveraging. + We are affirming our '###-' issuer credit and senior unsecured debt ratings on the partnership. + The stable outlook on EQM reflects approximately 54% of revenues backed by firm commitments. We expect S&P adjusted leverage of approximately 4.4x in 2018 and 4.1x in 2019. NEW YORK (S&P Global Ratings) Nov. 13, 2018--S&P Global Ratings today affirmed its '###-' issuer credit and senior unsecured ratings on EQM Midstream...

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