QUESTAR COMMENTS ON MOODY'S RATINGS

SALT LAKE CITY — Questar Corp. (NYSE:STR) commented today on Moody's decision to downgrade the company's debt ratings. Completing a review that began in May, 2002, Moody's established a Prime-2 rating for Questar Corp. commercial paper, an A2 senior unsecured rating for both Questar Pipeline and Questar Gas, and a Baa3 rating for the senior unsecured debt of Questar Market Resources. Moody's has established a stable outlook for each Questar entity. Questar Corp. does not issue debt at the parent-company level. The company issues debt at the subsidiary level, primarily to provide capital-structure clarity for regulatory purposes.

"Our credit remains solidly investment grade – and we will maintain strong credit ratings," said Keith O. Rattie, Questar president and chief executive officer. "In assigning a ‘stable' outlook, Moody's has confirmed there are no significant credit issues facing the company.

"That said, there's no catalyst for Moody's to take this action at this time. Questar Corporation and each of its subsidiaries are stronger today than at the time Moody's last reviewed and rated the company," Rattie said.

"Over the past six months we have taken decisive steps to reduce debt and credit risk in each of our businesses. With the sale of our Canadian exploration and production (E&P) business and our 50% interest in the TransColorado Pipeline, we are on track to reduce debt by over $200 million this year. While Questar Market Resources (QMR), our unregulated E&P subsidiary, is exposed to Rockies gas-price volatility, Wexpro, a major QMR subsidiary, comprises a substantial and growing part of QMR's E&P investment. Wexpro earns a defined return on its investment that is not based on price levels. Moreover, as reflected in the current forward curves, Rockies price fundamentals are quite favorable, and we are well positioned to capitalize on these fundamentals. QMR also benefits from a significant presence in the Midcontinent, where price volatility is significantly less than in the Rockies."

Rattie also noted that while Moody's decision to downgrade Questar Gas was based in part on low (9%) returns on equity, reflecting regulatory lag, the company is addressing this issue with a rate case currently pending before the Utah Public Service Commission.

Rattie said that the other rating agency that follows Questar, Standard and Poor's (S&P), recently reaffirmed its ratings of Questar Corp. and its subsidiaries. S&P has set an A1 rating for Questar Corp. commercial paper, A+ ratings for Questar Pipeline and Questar Gas senior-unsecured debt, and BBB+ rating for senior-unsecured debt in Questar Market Resources, with a negative outlook.