...August 19, 2021 HONG KONG (S&P Global Ratings) Aug. 19, 2021--S&P Global Ratings said today that Tencent Holdings Ltd.'s (A+/Stable/--) proactive approach to regulatory risks, improving advertising mix, and loss reduction at its Business Services segment could help the company moderate the effects of regulation and falling advertising spending in some segments. The leading China-based internet firm's second quarter results were modestly credit positive given EBITDA and margins that were ahead of our forecasts, and a more resilient outlook. Overall, we see negative credit implications for the broader internet sector. Tencent's management foreshadowed more regulatory actions are likely yet to come, following a number of abrupt actions over recent months. We believe the company is well-prepared to weather the storm given its proactive approach to addressing the government's key concerns. On data privacy and security, Tencent noted that regulators' plan to tighten rules around data collection...
