Fitch: Baidu unchanged on add-on

Fitch Ratings said Baidu, Inc.'s proposed additional issuance of its 4 3/8% senior unsecured notes due 2024 will not affect the A rating on the bond.

The proposed tap issuance will carry the same terms and conditions as the existing $600 million notes and it is rated in line with Baidu's senior unsecured rating of A as they will rank pari passu with its existing and future senior unsecured indebtedness.

The proceeds from the senior unsecured notes will be used for debt repayment and for general corporate purposes, Fitch said.

Baidu's ratings reflect an expectation that the company will maintain its dominant market position in China's search engine market, the agency said.

Technological innovations, plus high brand recognition and consumer satisfaction, have enabled Baidu to consistently defend its market share, Fitch said.

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