S&P rates Kunlun BB-

S&P said it assigned a BB- long-term issuer credit rating to Beijing Kunlun Tech Co. Ltd. (Kunlun).

The outlook is stable.

The rating reflects an expectation that Kunlun will maintain its leading market position in the niche local mahjong app segment, S&P said, and that Grindr will retain an entrenched and engaged user base over the next 12- to 24-months.

The agency also said it expects the company to sustain its moderate debt leverage and good cash flows.

However, these strengths are overshadowed by Kunlun's short record of operations, small scale and concentrated revenue sources, S&P said.

The company acquired two of its three current business units in the past two- to three-years, the agency explained, and these businesses don't exhibit clear synergies with each other.

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