Wolves owner Fosun's financial improvement recognised
Wolves owner Fosun has seen an improvement in its finances that has been recognised by an international rating agency.
S&P Global Ratings has raised China-based Fosun International’s rating outlook to stable.
It follows a streamlining of the organisation and easing of Fosun's short-term liquidity pressure.
Non-core Asset disposals brought a cash inflow of about £3.3 billion in 2022 and there has been stable credit support from banks which enabled Fosun's successful repayment of all concentrated maturing bonds in the past three quarters.
By the end of March Fosun had successfully brought down holding-company debt by about £2.7bn to £10.4bn.
The proportion of debts due over the next 12 months has dropped significantly and the stability of the debts has also improved significantly.
In March Guo Guangchang, chairman of Fosun International, said at the annual results presentation: "2022 was a special year for Fosun. I think it was a 'perfect storm’. To usher in the future, we must first win out the storm.”
Domestic and foreign banks have provided significant credit support to Fosun, which reflects mainstream financial institutions' recognition of Fosun's debt management actions.
S&P Global Ratings says Fosun’s strategy of "streamlining the organisation" will continue to bear fruit, which may be reflected in future rating actions.
