Moody's rates Fosun notes Ba2

Moody's Investors Service said it assigned a Ba2 senior unsecured rating to the dollar-denominated notes to be issued by Fortune Star (BVI) Ltd. and guaranteed by Fosun International Ltd.

The outlook is stable.

The purpose of the proposed bonds is to refinance Fosun's existing indebtedness and for working capital and general corporate purposes, the agency said.

The ratings reflect an expectation that Fosun will complete the bond issuance on satisfactory terms and conditions, including proper registrations with China's National Development and Reform Commission, Moody's said.

The Ba2 rating on the proposed bonds reflects Fosun's irrevocable and unconditional guarantee, the agency said.

The bond issuance will not materially increase Fosun's leverage levels because the company will primarily use the proceeds to refinance its existing debt at the holding company level, Moody's said.

Fosun's Ba2 corporate family rating considers the company's large and diversified investment portfolio and proven investment track record, the agency said.

The ratings are constrained by its high investment appetite and weak interest coverage at the holding company level, Moody's noted.

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