HONG KONG - S&P Global Ratings ('S&P') announces it has revised the outlook on Fosun International Limited ('Fosun', HKEx: 00656) to positive from stable, 'BB' rating affirmed.
S&P expects the liquidity and diversity of Fosun's assets to continue to improve, given Fosun's positive track record in investment management. The positive outlook reflects S&P's view that Fosun can maintain its leverage ratio while further unlock value from its investee companies and improve its portfolio liquidity and diversity.
S&P has stated in the report that Fosun could effectively execute its strategy of building its track record of unlocking value and improving its portfolio liquidity. For instance, Fosun increased percentage of listed asset by completing two IPOs of its portfolio companies and the reorganization of Yuyuan in 2018. Meanwhile, Fosun is increasingly focused on driving synergies across its large portfolio of investment companies, which is positive for value creation as well as for enhancing its portfolio companies' credit quality.
S&P will consider upgrade if Fosun can continue to execute the strategy of improving asset liquidity over the next 12-18 months.
Ms. Betty Li
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