S&P rates Beijing Infrastructure notes A+

S&P said it assigned its A+ long-term issue rating to the planned dollar-denominated senior unsecured notes that Beijing Infrastructure Investment Co. Ltd. will guarantee. The company’s special-purpose vehicle, Eastern Creation II Investment Holdings Ltd., will issue the notes.

The notes will draw down from BII's $6 billion medium-term note program.

“We equalize the issue rating on the senior unsecured notes with the issuer credit rating on BII even though BII's priority debt ratio is higher than 50%. That's because we believe, in the event of a default, the senior unsecured debtholders will not necessarily be disadvantaged relative to secured debtholders or unsecured debtholders at the subsidiaries level in terms of recovery prospects,” S&P said in a press release.

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