...April 12, 2021 HONG KONG (S&P Global Ratings) April 13, 2021--S&P Global Ratings today assigned its 'A+' long-term issue rating to Tencent Holdings Ltd.'s proposed senior unsecured notes. The notes will be drawn down from the company's upsized US$30 billion global medium-term note program. The issue rating is subject to our review of the final issuance documentation. Tencent will use the proceeds for general corporate purposes. The rating on the proposed notes is the same as the issuer credit rating on Tencent, reflecting the company's very strong cash flow and the minimum priority borrowings in its capital structure. We assume Tencent's revenue will slow to 15%-20% in 2021, driven by a normalization from the recent acceleration in revenue attributed to COVID-19. Rising online adoption and spending should support growth across the company's businesses. However, China's increased regulatory scrutiny on antitrust and fintech may weigh on Tencent's growth and profitability. Officials in the...
