Moody’s ups Fosun outlook to positive

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

At the same time, the agency affirmed Fosun's Ba3 corporate family rating, as well as the Ba3 rating on the senior unsecured bonds issued by Sparkle Assets Ltd. and guaranteed by Fosun.

Moody’s said the outlook change follows Fosun's Dec. 12 announcement that it plans to dispose of a 50% stake in its Shanghai Bund Financial Centre (BFC) projects. The announcement came just days after Fosun revealed on Dec. 5 that it intends to sell 100% stake in Ironshore Inc., the parent of Ironshore Insurance Ltd. (insurance financial strength Baa1, on review for upgrade).

"The two major asset disposals, if successful, should generate approximately RMB 26 billion in cash proceeds for Fosun, which will help improve the company's liquidity profile and lower its leverage, based on our expectation that the company will use part of the sales proceeds to repay debt," Lina Choi, Moody's vice president, senior credit officer and international lead analyst for Fosun, said in a news release.

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