Moody's changes Weibo outlook to stable

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

"The rating affirmation and stable outlook reflect Weibo's track record of maintaining a prudent financial policy through business cycles, and its solid credit profile underpinned by sustained free cash flow (FCF) and a net cash position. We expect the company's gross leverage to improve over the next 12-18 months, driven by earnings recovery, debt reduction and lower investment needs," said Lina Choi, a Moody's senior vice president, in a press release.

Moody's said it projects Weibo will reduce its total debt employing cash on hand and internal cash flow over the next 12-18 months. This will help drive its leverage to below 3x by the end of 2024 from around 4x as of the end of 2023.

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