Fitch rates Beijing Infrastructure notes A+

Fitch Ratings said it assigned Beijing Infrastructure Investment Co. Ltd.'s (BII; A+/stable) proposed dollar-denominated senior unsecured notes an expected rating of A+(EXP).

The notes will be issued under BII's $2 billion medium-term note program, which is rated A+.

Proceeds will be used primarily for the development of the urban railway transit system in Beijing, as working capital and for general corporate purposes.

The notes under the program will be issued by Eastern Creation II Investment Holdings Ltd., and are unconditionally and irrevocably guaranteed by Beijing Infrastructure Investment (Hong Kong) Ltd. (BII HK), a wholly owned subsidiary of BII. The notes under the will be senior unsecured obligations of BII HK and also rank pari passu with all other obligations of BII HK.

In place of a guarantee, BII has granted a keepwell and liquidity support deed and a deed of equity interest purchase undertaking to ensure that BII HK has sufficient assets and liquidity to meet its obligations under the guarantee for the notes under the medium-term note program.

Fitch said the notes under the program are rated at the same level as BII's issuer default rating, given the strong link between BII HK and BII and because the keepwell and liquidity support deed and deed of equity interest purchase undertaking transfer the ultimate responsibility of payment to BII.

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