Moody’s cuts Dalian Wanda, Wanda HK

Moody's Investors Service said it downgraded various ratings on Dalian Wanda Commercial Properties Co., Ltd. and Wanda Commercial Properties (HK) Co. Ltd. (Wanda HK).

The affected ratings are:

• DWCP's issuer rating to Baa3 from Baa2;

• Wanda HK's Baa3 issuer rating was withdrawn and it was assigned a Ba1 corporate family rating; and

• The senior unsecured ratings for the bonds issued by Wanda Properties Overseas Ltd. and Wanda Properties International Co. Ltd. were downgraded to Ba1 from Baa3. Both companies are wholly owned subsidiaries of Wanda HK.

The rated bonds are guaranteed by Wanda HK and supported by deeds of equity interest purchase undertaking and keepwell deeds between DWCP, Wanda HK and the bond trustee.

The issuers of the rated bonds have maintained – in interest reserve accounts – the equivalent of two periods of interest payments on the bonds.

The outlooks are negative. This concludes the review initiated on Jan. 6.

"The downgrade reflects our expectation that DWCP's debt leverage will rise while it accelerates implementation of its new business model to increase its bulk sales of malls," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

"The downgrade also reflects our view that these bulk sales will increase the company's business risk."

© 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.