S&P rates Fosun notes BB

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

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

The rating on the notes is the same as the issuer credit rating on Fosun because of credit substitution under the guarantee, S&P said.

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, the agency said.

That's why S&P said it did not notch down the issue rating for structural subordination risk.

The proceeds will be used for refinancing, working capital and other general corporate purposes, the agency said.

The stable outlook reflects an expectation that the company could maintain a well-diversified asset portfolio and gradually improve its asset liquidity, S&P said.

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