(Repeat for additional subscribers)
June 27 (The following statement was released by the rating agency)
Fitch Ratings has assigned Beijing Infrastructure Investment's (BII; A+/Stable)
USD2bn medium-term note (MTN) programme a final Long-Term Rating of 'A+'. At the same time,
Fitch has assigned the CNY1.2bn 3.75% senior unsecured notes issued under the programme a final
rating of 'A+'. The notes are due in 2017 and the company plans to use the
proceeds primarily for the development of the urban railway transit system in
Beijing, as working capital and for general corporate purposes.
The assignment of the final ratings on the MTN programme and yuan denominated
notes follows the receipt of documents conforming to information already
received. The final ratings are in line with the expected rating assigned on 16
KEY RATING DRIVERS - MTN Programme and Yuan Senior Unsecured Notes
The notes under the MTN programme will be issued by Eastern Creation II
Investment Holdings Ltd, and are unconditionally and irrevocably guaranteed by
Beijing Infrastructure Investment (Hong Kong) Limited (BII HK), a wholly owned
subsidiary of BII. The notes under the MTN programme will be senior unsecured
obligations of BII HK and also rank pari passu with all other obligations of BII
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 MTN programme.
The notes under the MTN programme are rated at the same level as BII's IDR,
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.
In Fitch's opinion, both the keepwell and liquidity support deed and the deed of
equity interest purchase undertaking signal a strong intention from BII to
ensure that BII HK has sufficient funds to honour the debt obligations. The
agency also believes BII intends to maintain its reputation and credit profile
in the international offshore market, and is unlikely to default on its offshore
obligations. Additionally, a default by BII HK could have significant negative
repercussions on BII for any future offshore funding.
Fitch's rating on the MTN programme is for the programme in general and
individual issues under it may not be assigned the same rating as the
RATING SENSITIVITIES - MTN Programme and Yuan Senior Unsecured Notes
Any rating action on BII's IDR would result in similar rating actions on the MTN
programme and the rated notes under the MTN programme.