Moody’s revises Fosun to negative

Moody's Investors Service said it changed the outlook on Fosun International Ltd.'s Ba3 corporate family rating to negative from stable and affirmed the corporate family rating.

The agency also affirmed the Ba3 rating on the senior unsecured bonds issued by Sparkle Assets Ltd. and guaranteed by Fosun.

The change in outlook follows Fosun's Dec. 11 announcement that Guangchang Guo – executive director, chairman and the ultimate controlling shareholder of Fosun – had been assisting in certain investigations carried out by Mainland China's judiciary.

"The negative outlook reflects Moody's expectation that Mr Guo's involvement in the investigation adds uncertainty over the company's ability to address the refinancing of its high levels of short-term debt and the funding of its investments," Lina Choi, Moody's vice president, senior credit officer and international lead analyst for Fosun, said in a news release.

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