S&P Global Ratings has given an A+ issue rating to Alibaba Group Holding's (HKG:9988) proposed Hong Kong dollar senior unsecured exchangeable notes, according to a Thursday release.

The notes' rating is similar to the technology company's issuer credit rating, stemming from a low subordination risk due to its substantial net cash levels.

S&P forecasts the company to retain large net cash even with increased investment in cloud and AI infrastructure.

Spending should benefit from strong cash flow from the company's core e-commerce segments, proceeds from the likely sale of its noncore investments, and frugal share repurchases, S&P said.