The rating agency S&P announced that it was awarded$Alibaba (BABA.US)$/$BABA-SW (09988.HK)$The priority unsecured US dollar convertible bonds to be issued have an A+ long-term debt rating. The above debt rating is equivalent to Alibaba's A+ entity credit rating, which reflects the low risk of post-repayment of the bond. The company's low leverage ratio limits the possibility that the bond's creditors will be at a clear disadvantage compared to other creditors.

As of March 31, 2024, Alibaba's debt structure consists of 68.4 billion yuan (RMB, same below) of bank loans and 102.3 billion yuan of priority unsecured bonds. This debt rating is subject to review of the final issuance terms and conditions. Alibaba plans to raise funds for share buybacks.

According to S&P, Alibaba is the largest e-commerce company in China in terms of total commodity transactions. Although the entry into domestic e-commerce in recent years has intensified competition in the industry, it is still expected that Alibaba will maintain its market position by more actively attracting merchants and users. The company is expected to maintain steady cash generation. As of March 31, 2024, the Group's adjusted net cash volume exceeded 250 billion yuan.

Editor/Jeffrey