...The Long-Term Issuer Default Rating (IDR) on Beijing Enterprises Holdings Limited (BEHL) is aligned with Fitch Ratings' internal credit assessment of the parent, Beijing Enterprises Group (BEG), which owns of 62.3% of the subsidiary. The assessment under Fitch's Parent and Subsidiary Linkage Rating Criteria is driven by BEG's 'High' strategic and operational incentives to support BEHL. BEHL holds BEG's most strategic assets and contributes the majority of the parent's EBITDA. Fitch's assessment of BEG is linked to, but not equalised with Fitch's internal assessment of the creditworthiness of the Beijing municipality, based on Fitch's Government-Related Entities Rating Criteria. BEG is wholly owned by Beijing State-owned Assets Supervision and Administration Commission. We expect a high likelihood of government support, underpinned by BEG's strategic role as the city's integrated municipal utilities and public service platform....
