Fitch rates Wanda Properties bonds BBB+

Fitch Ratings said it assigned a final BBB+ rating to Wanda Properties International Co. Ltd.'s $600 million 7¼% guaranteed bonds due 2024.

The notes are unconditionally and irrevocably guaranteed by Wanda Commercial Properties (Hong Kong) Co., Ltd., a wholly owned subsidiary of Dalian Wanda Commercial Properties Co., Ltd.

In place of a guarantee, Wanda has granted a keepwell deed and a deed of equity interest purchase undertaking to ensure that Wanda Commercial and Wanda Properties have sufficient assets and liquidity to meet their respective obligations for the senior notes, Fitch said.

Wanda also introduced a standby facility under the keepwell deed to provide Wanda Properties with sufficient liquidity to meet its obligations for the senior notes, the agency said.

The ratings are supported by the company's strong and growing recurring cash flows from its investment property portfolio of 85 retail malls and 54 hotels across China, Fitch said.

The company's flagship developments, called Wanda Plaza, enjoy high occupancy rates and continued rental rate growth, reflecting management's strong execution capabilities, the agency said.

Wanda also has a well-established brand and is likely to continue benefitting from China's urbanization and income growth, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.