Fitch cuts EQT

Fitch Ratings said it downgraded EQT Corp.'s issuer default rating to BBB from BBB+ and senior debt to BBB from BBB+ and affirmed the short-term issuer default rating at F2.

The outlook is stable.

The key factor for the downgrade is increased business risk from EQT's growing focus on upstream operations, Fitch said. Other concerns are the significant cash required for EQT's drilling program, extended softness in natural gas prices and a heightened environmental focus on Appalachian shale production.

EQT's ratings and stable outlook are supported by integrated natural gas operations, strong performance from production in two significant shale plays, the relatively predictable cash flows from its midstream and distribution segments, the use of equity to finance growth and healthy liquidity, the agency said.

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