Moody’s cuts EQT

Moody’s Investors Service said it downgraded EQT Corp.’s senior unsecured rating to Ba1 from Baa3. Moody’s also assigned a Ba1 corporate family rating, a Ba1-PD probability of default rating and an SGL-2 speculative grade liquidity rating.

“EQT’s significantly weakening cash flow metrics in light of the persistent weak natural gas price environment and the company’s intent to refinance its 2020 maturities in lieu of debt reduction through repayment drives the ratings downgrade,” said Sreedhar Kona, Moody’s senior analyst, in a press release. “Although the company is pursuing several avenues to reduce debt and enhance its cash flow, the execution risk involved in those initiatives is reflected in the negative outlook.”

EQT’s senior unsecured notes are rated Ba1, the same as the company’s CFR, because all of the company’s long-term debt, which includes $1 billion term loan (unrated) and $2.5 billion revolving credit facility (unrated), is unsecured.

The outlook is negative.

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