S&P puts Fosun on watch

Standard & Poor's said it placed its BB+ long-term corporate credit rating and cnBBB long-term Greater China regional scale rating on Fosun International Ltd. on CreditWatch with negative implications.

S&P also placed the BB+ long-term issue rating and cnBBB Greater China regional scale rating on the company's outstanding senior unsecured notes on CreditWatch with negative implications.

"We placed the ratings on CreditWatch because Fosun's financial strength is likely to weaken beyond our base-case expectation for the rating if the company uses debt to finance its recently announced acquisition of about €1 billion," said S&P credit analyst Huma Shi in a news release.

Fosun will acquire 80% of the wholly owned subsidiaries of Caixa Seguros e Saude SGPS SA, the insurance arm of Caixa Geral de Depositos SA, a 100% state-owned Portugal-based bank. Fosun is yet to finalize the funding arrangement for the acquisition.

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