Moody's rates Tencent bond Baa1

Moody's Investors Service said it assigned a Baa1 rating to Tencent Holding Ltd.'s proposed bond issuance.

These bonds will be issued under similar terms and conditions as those issued in December 2011.

At the same time, Moody's affirmed Tencent's Baa1 issuer rating.

The outlook is stable.

"The bond issuance will mildly affect Tencent's credit metrics, with proforma adjusted debt/EBITDA for the last 12 months rising to 0.7x from 0.5x, which is still strong for its rating level. At the same time, the issuance will further enhance the company's already strong balance sheet liquidity, which includes cash on hand of over RMB 27 billion as of end-June 2012," Moody's vice president and senior analyst Jonathan Lee said in a news release.

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