JD.com Inc.'s profitability is gradually improving driven by the company's growing economies of scale amid good execution of its growth strategy, rising bargaining power with suppliers, and better utilization of logistics facilities. We expect JD's debt leverage to remain low over the next 12-24 months, given strong operating cash flow and more selective capital investments. On Aug. 20, 2019, S&P Global Ratings raised its long-term issuer credit rating on JD to 'BBB' from 'BBB-' and the long-term issue rating on the company's senior unsecured notes to 'BBB' from 'BBB-'. The stable outlook reflects our expectation that JD will maintain its good business growth and steadily improve profitability over the next 12-24 months, despite intense competition. We raised the rating to
