Fitch Ratings on Tuesday said that it doesn’t expect Alibaba Group Holding Limited’s new structure to bring about an immediate change in its credit profile.
The credit rating agency said that it expected the group’s new governance structure to enhance its ability to respond rapidly to changes in the market and competition, improve management accountability and increase transparency to regulatory authorities.
Alibaba previously said it was planning to split into six units and explore fundraisings or listings for most of them, in a major revamp as China vows to ease a sweeping regulatory crackdown and support its private enterprises.
Fitch also said that the structural subordination of Alibaba’s current debt will not pose a significant credit risk, and that the company could unlock value through spin-offs or IPOs. – Reuters
