Fitch Ratings has assigned an A- foreign and local currency long-term issuer default ratings, among others, to China-based Kuaishou Technology (HKG:1024), according to a recent release.
The ratings consider Fitch's view that the company will retain a solid hold in China's short-video, live-streaming and content-based e-commerce services.
The company's user engagement, content ecosystem, and distinguished market positions should support its growth, Fitch said.
Rising online advertising and marketing budgets for short-video platforms and strong expansion in content-based e-commerce should boost the company's position, the rating agency said.
The company's frugal capital structure and sizable net cash should also aid its ratings, Fitch said.
However, a relatively short history of profitable growth and possible operational risks due to cyberattacks serve as weaknesses, Fitch said.
Notable changes in the company's share in key markets, operating cash flow, regulatory environment, financial policies, or record of profitable growth could trigger future rating actions, according to Fitch.
