Moody’s withdraws Chinese conglomerate Fosun’s credit ratings

MOODY’S Investors Service has withdrawn Fosun International’s credit ratings, citing insufficient information and months after the Chinese private conglomerate terminated the risk assessor’s services.

Moody’s withdrew Fosun International’s B2 corporate family and senior unsecured bond ratings, it said in a statement on Friday (Apr 14). Prior to the move, Fosun’s rating outlook was negative. Moody’s said it made the decision because it believes it has insufficient or inadequate information to support the maintenance of the ratings.

The move came after Moody’s cut Fosun’s ratings deeper into junk territory in October, when the Chinese firm also ceased to work with the rating agency. Backed by billionaire Guo Guangchang, Fosun became a credit market focus after June, when Moody’s warned about its liquidity pressure, prompting a selloff in the firm’s bonds and shares.

With businesses spanning from pharmaceutical to tourism, Fosun has rallied back in credit markets in recent months after unveiling a slew of planned asset sales and weighed potentially billions of US dollars in other deals, including for the Club Med resort chain.

A key technology unit of Fosun secured in January a 12 billion yuan (S$2.3 billion) loan from eight banks. Earlier this month, the conglomerate said it agreed to sell its 60 per cent stake in the parent company of Nanjing Iron & Steel to a firm owned by Citic. BLOOMBERG