[ET Net News Agency, 23 March 2018] Moody's Investors Service has upgraded Tencent
Holdings Limited's (00700) issuer and senior unsecured debt ratings to A1 from A2. Moody's
has also upgraded Tencent's senior unsecured MTN program rating to (P)A1 from (P)A2.
The outlook on the ratings is stable.
"The upgrade reflects Tencent's consistently solid revenue and EBITDA generation, and
the company's proven ability to maintain a strong credit profile while expanding its
business," said Lina Choi, a Moody's Vice President and Senior Credit Officer.
"The upgrade also reflects our expectation that Tencent will continue to exercise
discipline in its financial management and keep its debt leverage stable, while pursuing
further business growth," added Choi, who is also Moody's Lead Analyst for Tencent.
Moody's believes that Tencent's revenue and EBITDA growth will be strong, as the company
expands its internet products and services to monetize its large Weixin active user base,
which totaled 989 million at the end of 2017.
Tencent's revenue diversification has also increased because it has successfully
developed revenues from multiple sources, including online games, social networks, online
advertising, mobile payment and cloud services. (KL)