Fitch cuts Wanda Commercial, Wanda HK

Fitch Ratings said it downgraded Dalian Wanda Commercial Management Group Co., Ltd.'s (Wanda Commercial) and Wanda Commercial Properties (Hong Kong) Co. Ltd.'s (Wanda HK) long-term foreign-currency issuer default ratings to C from CC. Fitch also downgraded the ratings on the US dollar notes guaranteed by Wanda HK and issued by Wanda Commercial's subsidiaries to C from CC with RR4 recovery ratings.

The downgrade follows Wanda Commercial's announcement that it is soliciting consent from bondholders for amendments to the terms of the $600 million bond due Jan. 29 and to seek waivers of existing and potential events of default, the agency said.

Fitch said it considers the amendments a distressed debt exchange and if the solicitation is successful, it will drop the IDR to RD, restricted default. It would then reevaluate Wanda’s Commercial credit profile to identify the appropriate IDR rating.

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