(Yicai Global) May 31 -- Fosun International had its credit rating outlook revised to ‘stable’ from ‘negative’ by Standard & Poor’s after the Chinese conglomerate reduced its debt by about CNY24 billion (USD3.4 billion).

Fosun raised more than CNY30 billion from asset sales last year, S&P said in a report published yesterday. That helped the Shanghai-based company repay all of its maturing bonds in the past three quarters and cut its debt to about CNY93 billion at the end of March from the middle of last year, it added.

Over the past three years Fosun has been reducing its debt through the disposal of non-core assets to raise its credit rating, co-Chief Executive Xu Xiaoliang previously told Yicai Global. The firm’s situation is better this year than in 2022, but it will continue to pare debt, Xu added.

Fosun’s financing situation has greatly improved since the start of the year, with its operating unit on the Chinese mainland, Fosun High Technology Group, securing a CNY12 billion syndicated loan from five state-owned commercial banks in January. The unit also secured USD450 million  of overseas loans from more than 10 banks at the start of this month, according to its website.

Shares of Fosun [HKG: 0656] fell 0.2 percent to close at HKD5.11 (65 US cents) in Hong Kong today. The benchmark Hang Seng Index lost 1.9 percent.

Founded in 1992, Fosun's businesses cover the healthcare, retail, tourism, real estate, and financial sectors. Its net profit sank 95 percent to CNY538.7 million (USD76.1 million) last year from the year before, impacted by Covid-19 outbreaks and a downturn in global capital markets, according to its annual earnings report. Revenue rose 8.7 percent to CNY175.4 billion (USD24.8 billion).

Editors: Dou Shicong, Martin Kadiev