Fitch rates Tencent notes A+

Fitch Ratings said it assigned an expected rating of A+ to Tencent Holdings Ltd.'s proposed dollar-denominated senior unsecured notes to be issued under its $10 billion medium-term note program.

The notes are rated in line with Tencent's senior unsecured rating of A+ as they will represent direct, unconditional, unsecured and unsubordinated obligations of the issuer and at least equally with all other present and future unsecured and unsubordinated obligations of the issuer, Fitch said.

The proceeds from the proposed senior unsecured notes will be used for general corporate purposes, the agency said.

The ratings are underpinned by its leadership in multiple segments, revenue diversity, robust cash generation and abundant liquidity, Fitch said.

The company continues to dominate China's social communications market and has established clear leadership in the online games sector, both of which should be less sensitive to economic cycles, the agency said.

Tencent is also well positioned to capture China's fast-growing markets for online advertising, digital content and mobile payment-related services, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.