S&P revises Wanda view to negative

S&P said it revised its outlook for Dalian Wanda Commercial Management Group Co. Ltd. and its subsidiary Wanda Commercial Properties (Hong Kong) Co. Ltd. to negative from stable.

“We revised the outlook to negative as we see uncertainty in the listing of Zhuhai Wanda. Wanda Commercial and DWG's liquidity will be affected if the listing is unsuccessful. Zhuhai Wanda is a commercial operation service provider held 78.83% by Wanda Commercial as of April 2022,” the agency said in a press release.

Further, pre-IPO investors poured RMB 39.5 billion into Zhuhai Wanda. If the company isn’t listed by the end of 2023, Wanda Commercial is on the hook to buy back their shares, which would hurt its liquidity and that of Wanda HK. S&P said because of the buyback option, it is treating the RMB 39.5 billion as debt.

Concurrently, S&P said it affirmed Wanda Commercial’s BB+ issuer rating, Wanda HK’s BB issuer and the BB rating on the notes Wanda HK guarantees.

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