Moody’s: Baidu unchanged by new loan

Moody’s Investors Service said that Baidu Inc.’s plan to raise $1 billion through a five-year syndicated loan will not immediately affect its A3 issuer or senior unsecured ratings.

The outlook remains positive.

The five-year syndicated loan will enhance Baidu’s already strong liquidity profile, Moody’s said.

In April 2016, Baidu started the process of arranging a syndicated loan of $1 billion with a five-year tenure, the agency said.

The proceeds will be used for refinancing and general corporate purposes, Moody’s said.

Moody’s will continue to monitor the announced potential sale of Baidu’s 80.5% stake in iQiyi, a loss making subsidiary offering online video services, the agency said.

If the sale is realized, Baidu’s EBITDA margin will improve further, Moody’s added.

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