S&P rates Beijing Infrastructure notes A

S&P said it assigned its A long-term issue rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by Eastern Creation II Investment Holdings Ltd.

Beijing Infrastructure Investment (Hong Kong) Ltd. (BII HK; A/stable/--) will unconditionally and irrevocably guarantee the notes, which will be a drawdown from its US$6 billion medium-term note program.

BII HK's ultimate parent, Beijing Infrastructure Investment Co. Ltd. (BII; A+/stable/--) will support the issuance under keepwell and equity-interest purchase undertaking arrangements. The MTN program also allows some issuances to be directly guaranteed by BII, the sole metro investment and operation platform of the Beijing municipal government.

“The issue rating is the same as our issuer rating on the guarantor BII HK, as a result of the credit substitution effect,” S&P said in a news release.

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