Moody's: EQT view to negative

Moody's Investors Service said it changed EQT Corp.'s outlook to negative.

The agency also affirmed the company's Baa2 senior unsecured ratings and prime-2 commercial paper rating.

A Baa2 rating also was assigned to its proposed offering of senior notes.

The proceeds will be used to fund planned 2012 capital spending in excess of operating cash flows.

The negative outlook points to EQT's rising debt levels to meet its aggressive natural gas production growth objectives, Moody's said.

The agency also is concerned about EQT's future corporate structure as the company evaluates various options to fund its growth.

The ratings also consider the company's very low cost structure, enabling it to generate competitive investment returns in a weak natural gas price environment, Moody's said.

These positive attributes mitigate the risks of the company's limited geographic and basin diversification and much smaller production scale, the agency said.

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