Fitch downgrades Wandas

Fitch Ratings said it downgraded Dalian Wanda Commercial Management Group Co., Ltd.'s long-term foreign-currency issuer default rating to BB- from BB+ and Wanda Commercial Properties (Hong Kong) Co. Ltd.'s long-term foreign-currency IDR, senior unsecured rating and the rating on its guaranteed U.S.-dollar notes to B+ from BB. The recovery rating is RR4.

“The downgrade follows a weakening in the consolidated profile of Dalian Wanda Group Co., Ltd. (Wanda Group), Wanda Commercial's 44% parent, amid declining liquidity at Wanda Commercial's sister company, Wanda Properties Group Co. Ltd. (Wanda Properties), as it seeks to extend short-term bank loans. Wanda Commercial is rated one notch above the consolidated profile, based on the ‘strong subsidiary, weak parent’ approach under Fitch's parent and subsidiary linkage (PSL) rating criteria,” the agency said in a press release.

All ratings remain on rating watch negative.

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