...March 4, 2020 HONG KONG (S&P Global Ratings) March 4, 2020--JD.com Inc. (###/Stable/--) will likely deliver stable operating performance in the first quarter of 2020, what should be the worst of the COVID-19 outbreak in China. The e-commerce group's strengthening market position in lower-tier cities and its self-owned logistics should mitigate disruptions affecting other Chinese retailers during the epidemic. S&P Global Ratings believes JD's good free operating cash flow and low debt leverage will support its credit profile over the next 12-24 months. We believe the health crisis is pushing consumers to shop online in China as people avoid crowded spaces and public transport. While JD will likely face margin erosion for a quarter or two as it diverts funds for healthcare donations, we expect the company will maintain sufficient ratings buffer. The company's EBITDA margin should recover later this year thanks to operation efficiency improvements and increasing scale. We believe JD will sustain...
