Moody's lifts Baidu view to positive

Moody's Investors Service said it changed the outlook on Baidu Inc. to positive from stable.

Moody's also said it affirmed its A3 issuer and senior unsecured ratings.

The positive outlook reflects an expectation that Baidu's persistent solid operating performance will support a further strengthening of its credit profile over the next 12- to 18-months, the agency said.

The ratings reflect an expectation that the deconsolidation of the financial service business will reduce Baidu's contingent liabilities, Moody's said.

Baidu's core business has continued to strengthen in the nine months that ended Sept. 30 with 30% revenue growth and 22% EBITDA growth from the same period last year, the agency said.

Revenue and EBITDA growth for Baidu's core business were driven by both robust user traffic growth and increased revenue per search, Moody's said.

The agency said it expects these positive operating trends to continue.

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