Moody’s rates Beijing Infrastructure notes A2

Moody's Investors Service said it assigned a provisional A2 senior unsecured rating to the guaranteed medium-term note program to be issued by Eastern Creation II Investment Holdings Ltd. and guaranteed by Beijing Infrastructure Investment (Hong Kong) Ltd. (unrated).

The agency also assigned an A2 senior unsecured rating to Eastern Creation’s drawdown of RMB-denominated senior unsecured notes under the program.

The outlook is stable.

The notes will be unconditional and irrevocably guaranteed by Beijing Infrastructure. In addition, they will be supported by a deed of equity interest purchase undertaking between ECI II, Beijing Infrastructure, and Beijing Infrastructure’s parent, Beijing Infrastructure Investment Co., Ltd. (BII, A1 stable). The notes will also be supported by the bond trustee and a keepwell and liquidity support deed between BII and the bond trustee.

Both Eastern Creation and Beijing Infrastructure are wholly owned subsidiaries of Beijing Infrastructure Investment Co.

"The MTN program will improve BII's financing channels in the offshore market and provide the company with financial flexibility to meet its sizable capex requirements," Moody's analyst Ivy Poon said in a news release. "At the same time, the issuance will not materially change our key projected credit metrics for BII, given the small MTN drawdown relative to its total debt."

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