S&P: Wanda HK view to negative

Standard & Poor’s said it revised the outlook on Wanda Commercial Properties (Hong Kong) Co. Ltd. (Wanda HK) to negative from stable.

The agency also said it affirmed the company’s BBB long-term corporate credit rating, along with the BBB- long-term issue rating on its guaranteed senior unsecured notes.

In line with the outlook revision, S&P said it lowered the Greater China regional scale rating on the company to cnA- from cnA and on the notes to cnBBB+ from cnA-.

The outlook revision follows a similar action on the company’s parent, Dalian Wanda Commercial Properties Co. Ltd., the agency said.

Wanda HK is expected to remain a highly strategic subsidiary of Wanda Commercial over the next two years, S&P said.

Wanda HK is Wanda Commercial’s key offshore investment holding company and financial platform. The rating on Wanda HK is one notch lower than the rating on Wanda Commercial to reflect the company’s highly strategic status to the parent group, the agency said.

Wanda HK’s stand-alone credit profile as assessed at B- to reflect the company’s limited operational scale and short operating history, S&P said.

The company’s weak trend is expected to continue because it takes time for property sales to be recognized and the company’s role as the key offshore funding vehicle for the wider group means it will borrow more, the agency said.

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