S&P downgrades Dalian Wanda

S&P said it lowered the long-term corporate credit rating on Dalian Wanda Commercial Properties Co. Ltd. to BBB- from BBB.

The outlook is negative.

The agency also said it lowered the long-term corporate credit rating on Wanda Commercial Properties (Hong Kong) Co. Ltd. (Wanda HK) to BB+ from BBB-.

The outlook is negative.

S&P also said it lowered the rating on the outstanding senior unsecured notes that Wanda HK guarantees to BB from BB+.

The agency also lowered the long-term Greater China regional scale rating on Wanda Commercial to cnBBB+ from cnA-, as well as that on Wanda HK to cnBBB from cnBBB+ and on the notes to cnBBB- from cnBBB.

S&P said the downgrades reflect the deterioration in Wanda Commercial’s leverage and expectation that its debt-to-EBITDA ratio will likely remain high at a range of 5x to 6x over the next one to two years.

The company's capital expenditure, including expenses for land acquisitions, construction and new investments, exceeds previous expectations, the agency added.

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