Strong user base in instant messaging and social networking services, with improving monetization capabilities. High growth prospects for China's Internet industry. Intense competition. Regulatory risk in China's Internet industry. Improving margins. Strong cash flows. Solid net cash position. The stable outlook on Tencent Holdings Ltd. reflects our expectation that the China-based Internet service provider will maintain its strong market position and organic growth over the next two years. We expect the company to expand its social networking user base and improve monetization models for both the advertising and gaming businesses. We also believe that Tencent will maintain a strong balance sheet and generate exceptional cash flows over the next two years. We could lower the rating if Tencent's 'a' stand-alone
