Moody’s gives Beijing Infrastructure notes A2

Moody's Investors Service said it assigned an A2 rating to the proposed senior unsecured dollar-denominated notes under the medium-term note program of Beijing Infrastructure Investment Co. Ltd. (BII, A1 stable).

The notes will be issued by Eastern Creation II Investment Holdings Ltd. (ECI II) and guaranteed by Beijing Infrastructure Investment (Hong Kong) Ltd. (BIIHK, unrated).

The notes are also supported by a deed of equity interest between Eastern Creation II, BIIHK, and BII – which is BIIHK's parent – and a keepwell and a liquidity support deed between BII and the bond trustee.

The outlook is stable.

Proceeds will be used to finance BII's capex and for general corporate purposes.

"The A2 rating reflects BII's close alignment with the Beijing municipal government and its high strategic importance to the local public transport sector," Moody's analyst Ivy Poon said in a news release.

"The MTN rating is one notch lower than BII's A1 issuer rating to reflect the weakness in the bond under keepwell structure, in the absence of a guarantee on the bond from BII."

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