Moody's upgrades Fosun bonds

Moody's Investors Service said it affirmed Fosun International Ltd.'s Ba3 corporate family rating, upgraded its senior debt rating and Sparkle Assets Ltd.’s senior bonds to Ba3 from B1 and changed the outlook to stable from negative.

The agency said the outlook change reflects the improved quality of Fosun's investment portfolio, its more diverse funding sources to support its investments and the smooth integration of its insurance business in Portugal.

The upgrade of the bonds puts the rating in the same rating category as Fosun's corporate family rating and incorporates Moody's assessment of lower structural subordination risk, the agency said.

Moody’s said Fosun's Ba3 corporate family rating is supported by its diversified business profile, proven investment track record and multiple funding channels to support its investments.

However, the agency said Fosun’s ratings are constrained by its ambitious growth appetite, resulting in higher execution and event risks from its fast growth and foray into new businesses; moderate level of credit contagion risk from core subsidiaries; and weak financial profile for its Ba3 corporate family rating.

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