Moody's eyes Fosun for lower rating

Moody's Investors Service said it placed the B1 corporate family rating of Fosun International Ltd. on review for downgrade. The agency also placed the B1 rating of the backed senior unsecured bonds issued by Fortune Star (BVI) Ltd. and guaranteed by Fosun on review for downgrade.

Concurrently, Moody's revised the outlook to ratings under review from negative.

"The review for downgrade reflects Fosun's elevated refinancing risk due to the fast and significant decline of the market value of its listed assets, which further reduces the company's funding headroom. In addition, the company faces heightened execution risk related to its different fundraising plans amid capital market volatility and investors' increased risk-averse sentiment," said Lina Choi, a Moody's senior vice president, in a press release.

The review will consider Fosun’s ability to raise funds, its asset sale plan, its portfolio and contagion risk from its key investees, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.