S&P lowers Fosun, notes to BB

Standard & Poor's said it lowered its long-term corporate credit rating on Fosun International Ltd. to BB from BB+.

The outlook is stable.

The agency also lowered its rating on the outstanding senior unsecured notes to BB from BB+ and its long-term Greater China regional scale ratings on Fosun and the notes to cnBBB- from cnBBB.

All ratings were removed from CreditWatch, where they were placed with negative implications on Jan. 13.

"We downgraded Fosun because we believe the company's already significantly increased leverage is unlikely to improve in the next 12 months," S&P credit analyst Huma Shi said in a news release. "Fosun's mostly debt-funded acquisitions and the continued weak financial performance of its steel segment are largely responsible for the increase in leverage over the past year. We expect the company to continue to make significant acquisitions for the next 12 months."

© 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.