S&P lowers Fosun International’s ratings

Cut from "BB+" to "BB" underlines need for China’s largest privately owned investment company by revenue to control its leverage risks and diversify fundraising channels.

Fosun International has had its corporate credit rating and the rating on its notes cut from “BB” to “BB” by Standard Poor’s, which may impact the company’s future debt financing.

Moody’s Investors Service also said it would continue to review the company for a possible downgrade.

We downgraded Fosun because we believe the company's already significantly increased leverage is unlikely to improve in the next 12 months, said SP's credit analyst Huma Shi, after the company announced a rights issue to raise between HK$4.8 billion US$619 million and HK$5.18 billion.

Fosun International, the overseas unit of Fosun Group,...

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