Beijing Infrastructure Investment Co. Ltd.

Beijing Infrastructure Investment Co. Ltd. The stable outlook on BII reflects our view on the Beijing government's creditworthiness and our expectation that China's economy will continue to grow at a solid pace to support its fiscal resilience over the next 24 months. We also believe that the Beijing municipal government will continue to receive ongoing and likely timely and extraordinary support from the central government to underpin its creditworthiness. We expect the likelihood for BII to receive extraordinary support from the government to stay almost certain because of the company's critical role in executing Beijing's long-term urban transport development plan and its status as a public service provider. The stable outlook on Beijing Infrastructure Investment (Hong Kong) Ltd. (BIIHK) reflects

...We continue to see an almost certain likelihood of extraordinary government support for Beijing Infrastructure Investment Co. Ltd. (BII). BII has a critical role in executing Beijing's long-term urban transport development plan, given its status as a public service provider. The company continues to receive substantial construction and operation funds from the Beijing municipal government under the Authorize-Build-Operate (ABO) agreement, highlighting its top-tier policy importance. BII remains wholly owned by the Beijing Municipal State Asset Supervision and Administration Commission (SASAC) on behalf of the Beijing municipal government and we see little possibility of shareholder divestment in the near future. We expect BII to maintain its dominant market position in Beijing's public transportation sector. Beijing's metro operation mileage expansion is likely to continue over the next three years at least, i.e. to 850 km in 2020 from approximately 700 km in 2018. The city's government...

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