Fitch rates Vipshop BBB+

Fitch Ratings said it published a long-term foreign-currency issuer default rating of BBB+ to Vipshop Holdings Ltd., along with a senior unsecured rating of BBB+.

The outlook is stable.

Vipshop's ratings are supported by its large operating scale, strong brand recognition and merchandising and fulfilment capabilities, which defend its business model and market leadership in online retail of discount apparel in China, Fitch said.

The company has decent EBITDA margins, strong operating cash flows and healthy financial profile, the agency said.

Vipshop's ratings are constrained by its modest operating scale, relatively short history of profitability and high pace of change in the competitive industry, Fitch said.

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