...HONG KONG (S&P Global Ratings) Aug. 20, 2018--S&P Global Ratings said today its rating and outlook on Tencent Holdings Ltd. (A+/Stable/--) are not affected by the company's second-quarter results, which was slightly softer than our expectation. In our view, Tencent still has significant financial buffers for the current rating level. The company's revenue rose 39% and its adjusted EBITDA increased 31% year-on-year in the first half of 2018. We believe China's freeze on new game approvals will be temporary, pending a restructuring of the relevant officiating bodies. The freeze meant Tencent was not able to earn revenue from its popular tactical tournament games. This affected revenue growth in the second quarter of 2018 and will reduce its third quarter year-on-year growth as well. The Chinese government has not provided a time frame for resuming its regulatory review. In China, video game publishers have to obtain a game license from General Administration of Press and Publication before...
