Fosun International will reorganize its business portfolio to shrink its debt, the Chinese private-sector conglomerate said Wednesday, following a downgrade to its credit rating by Moody’s, reports Nikkei Asia. Fosun, whose businesses include finance, health care and tourism, will dispose of nonstrategic and noncore assets and increase cash on hand, according to an earnings presentation released Wednesday.
Fosun will cut costs at the parent company and call on subsidiaries to lift dividend payouts, the company said, without providing details on its asset sale plans.
Moody’s Investors Service’s launched a review of Fosun’s credit rating on June 14. This sent yields on Fosun’s dollar-denominated bonds with 2023 maturities jumping from the 8% range. Moody’s downgraded Fosun to B1 from a Ba3 rating last week. A negative outlook carries the risk of further downgrades.