Alibaba Group Holding Ltd (BABA)

[UnderOath-KY]

Hong Kong, August 28, 2018 -- Moody's Investors Service says that Alibaba Group Holding Limited's (A1 stable) strong operating results for the first quarter of 2019 support its credit quality.
"Alibaba's strong revenue growth and robust operating cash flow generation provide a buffer for the company's investment needs," says Lina Choi, a Moody's Vice President and Senior Credit Officer.
Moody's expects Alibaba's revenue to rise 40%-45% in the next 12-18 months as it continues to grow its core business and new services. However, the company's consolidated margins will continue to decline from historically high levels as it invests in new business initiatives.
More details can be found in the issuer comment published on 27 August 2018. (https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1139290)
The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
Founded in 1999 by Jack Ma and a group of partners, Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer, and business-to-business sales services in its various marketplaces. It also provides data-centric cloud computing services and digital media and entertainment services.