Monopolistic position in metro investment and operation in Beijing with a strong and growing demand. Improving profitability as a result of fare framework implemented in 2014. Uncertainty stemming from exposure to land and property development. Weak, albeit improving, operating cash flow. Sizable capital expenditure on metro construction projects for the next two to three years. Strong ongoing government support supports the funding of metro construction and the debt-service ability. The stable outlook on Beijing Infrastructure Investment Co. Ltd. (BII) reflects our view of the creditworthiness of the Beijing municipal government. We expect the likelihood of extraordinary government support to BII to remain almost certain because of the company's critical role in executing Beijing's long-term urban transport development plan, and its
