Moody's might lower Fosun

Moody's Investors Service said it placed Fosun International Ltd.'s Ba3 corporate family and B1 senior unsecured ratings under review for downgrade.

The action follows Fosun's announcement that it won the bid for the proposed acquisition of 80% of the share capital and voting rights of Fidelidade - Companhia de Seguros, SA, Multicare - Seguros de Saude, SA and Cares - Companhia de Seguros, SA, all of which are unrated wholly owned subsidiaries of Caixa Seguros e Saude, SGPS, SA (unrated), the insurance arm of Portugal's state-owned bank, Caixa Geral de Depositos, SA (Ba3 negative), for an aggregate consideration of €1 billion.

"Our review of Fosun's ratings reflects the uncertainties associated with the company's funding plan, as well as the execution risks involved in the transaction," Moody's vice president and senior analyst Lina Choi said in a news release.

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