Moody’s gives Eastern Creation notes A2

Moody's Investors Service said it assigned A2 rating to the proposed senior unsecured notes to be issued under the $6 billion medium-term note program issued by Eastern Creation II Investment Holdings Ltd.'s (ECI II).

The notes are unconditionally and irrecoverably guaranteed by Beijing Infrastructure Investment (Hong Kong) Ltd. (unrated), a wholly owned subsidiary of Beijing Infrastructure Investment Co., Ltd. (BII, A1 stable).

The notes are also supported by a deed of equity interest between Eastern Creation, Beijing Infrastructure HK and BII, as well as by a keepwell agreement and a liquidity support deed between BII and the bond trustee.

The outlook is stable.

BII will use the proceeds to finance capital expenditures and for general corporate purposes.

The A2 senior unsecured ratings reflect the combination of BII's A1 issuer rating and the structural features of the medium-term notes.

BII's current A1 issuer rating combines its baseline credit assessment of baa2 and a four-notch uplift based on Moody's expectation of very high support from the Beijing Municipal Government, under the joint-default analysis approach for government-related issuers.

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