Instructions:

TheCase:

Assume that we are assessing a proposal to provide a USD $300Mnbanking limit for Fosun International Co., Ltd. (“FOSUN”), a listed private-ownedconglomerate in China.   

Attached is FOSUN’s most recent annual report for the fiscalyear ended 2011, plus a summary of the Group’s consolidated financials and keycredit statistics.  

Please prepare a thorough and independent credit analysis onthis deal and provide your recommendations.  Your discussion shouldinclude (but is not necessarily limited to) the following:

Ÿ  Discussionof client and industry background, particularly the key factors relevant toassessing this credit.

Ÿ  Key risksand mitigants.  What risks do we most need to be concerned about inconsidering this deal and client? What mitigants are available to minimizethese risks? Please demonstrate that a thorough understanding the businessmodel of the company and the key issues which it faces.  

Ÿ  Financial analysis:  This may include discussion of operating performance, keyperformance drivers, working capital management, liquidity, cash flow, debtservicing ability, repayment sources, capital protection, financial outlook,and comparison with peers. These are only suggested topics, and you are welcometo present your own key topics as well, and also bring in your personalknowledge of the industry. Please do not simply list ratios or numbers, butgive your interpretation of what these figures mean for the bank.

Ÿ  Summarize your recommendation based on the above.  Should Bank go ahead with this proposed deal? Why or why not? What kind of productswill you offer to FOSUN?  What protections in the form of security, risk monitoring triggers and covenantswould you recommend be obtained from FOSUN? Please give reasons to support your solution.