Monopolistic position in metro investment and operation in Beijing with a strong and growing demand. Improving profitability as a result of the fare framework implemented in 2014. Uncertainty stemming from changes in property policies and volatile market for land and property development. Weak, albeit improving, operating cash flows. Sizable capital expenditure on metro construction projects for the next two to three years. Very strong and stable ongoing government support for metro construction and operations. The stable outlook on Beijing Infrastructure Investment Co. Ltd. (BII) reflects our view that the creditworthiness of the Beijing government is going to be stable. This reflects our view that the economy will continue to grow at a solid pace to support its fiscal resilience. We
