S&P rates Fosun notes BB

S&P said it assigned its BB long-term issue rating to the proposed U.S. dollar-denominated senior unsecured notes that Fosun International Ltd. (Fosun) will unconditionally and irrevocably guarantee.

Fortune Star (BVI) Ltd., a special purpose entity, will issue the notes.

S&P said the rating on the notes is the same as the corporate credit rating on Fosun (BB/stable/--) because of credit substitution under the guarantee. As an investment holding company, Fosun's secured debt at the parent level is less than 50% of the total debt at the parent level.

“Therefore, we do not notch down the issue rating for structural subordination risk,” S&P said in a news release.

Fosun also plans a retap of its U.S. dollar-denominated 5 3/8% senior unsecured notes due December 2020, under the same terms and conditions. The notes are also issued by Fortune Star (BVI) Ltd. and unconditionally and irrevocably guaranteed by Fosun.

“The retap will not affect our BB rating on the proposed notes,” S&P said.

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