Fitch rates Baidu notes A

Fitch Ratings said it assigned a final rating of A to Baidu Inc.'s $1 billion 3.25% senior unsecured notes due 2018.

The assignment of the final rating follows the receipt of documents conforming to information already received.

The final rating is in line with the expected rating assigned in July 30, Fitch said.

The notes are rated at the same level as Baidu's issuer default rating as they constitute direct, unconditional, unsecured and general obligations of the company, the agency said.

The ratings reflect Baidu's dominance in the internet search market in China with a traffic market share of more than 80%, Fitch said.

The ratings also benefit from the company's strong profitability and balance sheet, reflecting its cash generation ability through a proven performance-based, online marketing service to half a million advertisers targeting hundreds of millions of Chinese internet users, the agency said.

Fitch said it believes that technological innovation, plus high levels of brand recognition and consumer satisfaction, has enabled Baidu to consistently defend its high market share in a rapidly growing market.

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