S&P upgrades Beijing Infrastructure

Standard & Poor's said it raised the issue ratings on the senior unsecured notes that Beijing Infrastructure Investment (Hong Kong) Ltd. guarantees to A from A-.

The agency also raised the Greater China regional scale ratings on all the notes to cnAA+ from cnAA.

At the same time, S&P affirmed its A+ long-term corporate credit rating on Beijing Infrastructure Investment Co. Ltd. (BII) and the A long-term corporate credit rating on Beijing Infrastructure Hong Kong.

The outlook is stable.

The agency also affirmed its long-term Greater China regional scale ratings of cnAAA on BII and cnAA+ on Beijing Infrastructure Hong Kong.

BII wholly owns its Hong Kong-based subsidiary Beijing Infrastructure Hong Kong.

"We raised the issue ratings because we believe the structural subordination risk associated with Beijing Infrastructure Hong Kong’s guaranteed notes has reduced," S&P credit analyst Gloria Lu said in a news release.

That's because the company's leasing subsidiary, Cornerstone International Finance Leases Co. Ltd., primarily relies on its parent for funding rather than other sources, the agency said.

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