S&P puts Questar on watch

Standard & Poor’s said it placed Questar Corp.’s A issuer credit ratings on CreditWatch with negative implications, along with its subsidiaries Questar Gas Co. and Questar Pipeline Co., including the A issuer credit ratings, on CreditWatch with negative implications.

The CreditWatch negative placement is based on Questar’s agreement to be acquired by Dominion Resources Inc., S&P said.

When the acquisition successfully closes, the agency said it expects to view Questar as a core subsidiary of Dominion Resources, leading to the issuer credit rating on Questar being aligned with Dominion’s then-group credit profile.

Questar is expected to form a meaningful part of the combined entity, contributing about 15% of total EBITDA, S&P said.

Dominion’s senior management is expected to demonstrate a strong commitment to Questar given Dominion’s emphasis on maintaining the size and scope of its regulated utility and midstream energy operations, the agency said.

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