S&P cuts Wandas

S&P said it trimmed its ratings for Dalian Wanda Commercial Management Group Co. Ltd. to BB from BB+ as well as Wanda Commercial Properties (Hong Kong) Co. Ltd. (Wanda HK) and the long-term issue rating on the senior unsecured notes Wanda HK guarantees to BB- from BB.

The ratings remain on CreditWatch with negative implications where they were placed on April 28 reflecting the uncertainty on Zhuhai Wanda’s IPO, the agency said.

“We downgraded Wanda Commercial due to its parent's weakening liquidity. We see heightened risks from DWG's narrowing financing channels due to the extended delay in Zhuhai Wanda's IPO. Weaker property sales than we expected for Wanda Properties Group Co. Ltd. (Wanda Properties), a sister company of Wanda Commercial, have worsened the situation for the group,” S&P said in a statement.

S&P said it aims to resolve the negative watch as soon as details on Zhuhai Wanda’s situation become clear.

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