Lucror Has ‘Negative’ Credit Bias on Fosun Due to High Leverage

“Our credit bias is ‘negative,’ owing to the aggressive growth, high leverage and low transparency," wrote Leonard Law, credit analyst at Lucror on Fosun, in a note.

In addition, the company’s bonds have weak covenants and are structurally subordinated: Law.

Says “very difficult” to grasp Fosun’s true market value, leverage and overall financial health because more than half of Fosun’s assets are private entities with opaque disclosures: Law.

“We have to rely on management’s market value estimates, which cannot be independently verified”.

NOTE: Moody’s upgraded Fosun International to Ba2 on Jan. 16, citing improved business profile.

January 17, 2018, 02:52:54 GMT
By Denise Wee; Edited by Andrew Monahan