Moody's revises Weibo view to stable

Moody's Investors Service said it affirmed Weibo Corp.’s Baa2 issuer and senior unsecured ratings and revised the outlook to stable from negative.

“The change in outlook to stable reflects our view that the parent's debt-funded privatization will pose less drag on Weibo's credit profile, because a lower amount of debt was used than we previously expected. There is also less risk of Weibo's assets or cash flow being used to service or repay Sina's privatization debt,” said Lina Choi, a Moody's senior vice president, in a news release.

“The rating affirmation reflects Weibo's steady operating performance, solid net cash position, the presence of Alibaba as a strategic shareholder, and its leading position in China's online social media space.”

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