Moody’s downgrades Wanda

Moody’s Investors Service said it downgraded Dalian Wanda Commercial Management Group Co., Ltd.'s (DWCM) corporate family rating to B1 from Ba2, Wanda Commercial Properties (HK) Co. Ltd.'s (Wanda HK) CFR to B3 from B1 and the senior unsecured ratings on the bonds issued by Wanda Properties Global Co. Ltd., Wanda Properties Overseas Ltd. and Wanda Properties International Co. Ltd. to B3 from B1.

Moody's said it also revised the outlook on DWCM and its subsidiaries to negative from ratings under review. These actions conclude the rating review started on May 5.

"The downgrade reflects DWCM's deteriorated access to funding, which will diminish the company's liquidity buffer over time and constrain its financial flexibility in managing its operating and refinancing needs. Such a development would no longer support the company's previous rating at the Ba-category," said Alfred Hui, a Moody's analyst, in a press release.

"The negative outlook reflects our concerns that negative developments in DWCM's parent company, Dalian Wanda Group Co., Ltd., would continue to drag down DWCM's credit and liquidity profile. The sizable amount of a repurchase obligation for the pre-IPO capital of DWCM's property management subsidiary will add liquidity pressure to DWCM if the subsidiary cannot be listed by the end of 2023," Hui added.

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