S&P rates Fosun notes BB

S&P said it gave a BB long-term issue rating to the proposed euro-denominated senior unsecured notes that Fosun International Ltd. will 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 (BB/negative/--) 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 total debt. Therefore, we do not notch down the issue rating for structural subordination risk,” S&P said in a press release.

Fosun will use the proceeds for refinancing, working capital and other general corporate purposes.

The outlook is negative.

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