Fitch Ratings has affirmed Alibaba Group Holding Limited's Long-Term Foreign- and Local-Currency Issuer Default Ratings and senior unsecured rating at 'A' with a Stable outlook. The rating agency cited expectations that Alibaba will maintain a strong business profile and a robust financial position. The report noted that the company's two key segments, consumption and AI/cloud services, are positioned for solid long-term profit growth in expanding markets. While acknowledging near-term profitability pressures from intense competition in the quick commerce sector, Fitch anticipates the current price war will likely ease within the next six to twelve months. The affirmation comes despite elevated capital expenditures for AI and cloud infrastructure, which are expected to compress free cash flow margins. However, Fitch believes Alibaba will maintain its gross leverage with a sizeable net cash position. The company's leadership in China's e-commerce and cloud service markets remains a key underpinning of its strong rating.