Summary: Beijing Infrastructure Investment Co. Ltd.

Strong and growing market position in public transport in Beijing. Ongoing government support for metro operations. Low metro fares undermine profitability. Uncertainties in non-retail businesses stemming from changes in property policies and volatile markets. Weak cash flow adequacy. Ongoing government support in the form of project funds. The stable outlook on Beijing Infrastructure Investment Co. Ltd. (BII) reflects our stable outlook on the creditworthiness of the Beijing government. We expect extraordinary support from the government to BII to remain almost certain because of the company's essential role in executing Beijing's long-term urban transport development plan and BII's status as a public service provider. We may lower the rating on BII if we view the creditworthiness of the government as having

... from changes in property policies and volatile markets....

Summary