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Dalian Wanda Commercial Management Group’s (Wanda Commercial) ratings have been downgraded to B from BB- by Fitch. Similarly, Wanda HK’s ratings were also downgraded to B- from B+. The main reasons cited were the weakening of the group’s consolidated profile, worsening funding access and doubts over the successful listing of its subsidiary by the end of this year. The downgrade comes against a backdrop of continued weakening in Wanda Group’s consolidated profile due to disputes at its sister company, Wanda Properties. Stakeholder disputes over the freezing of Wanda Commercial’s shares under a pre-trial asset preservation procedure have amplified liquidity pressure at Wanda Properties. Furthermore, Wanda Commercial faces worsening funding access due to disputes with non-bank financial institutions. Finally, there have been rising concerns over the ability of subsidiary Zhuhai Wanda’s IPO to be completed by end-2023, failing which could result in a further deterioration of the group’s liquidity as it will be forced to buyback pre-IPO shares. Separately, another unit of Wanda Group, Wanda Investment, has announced the sale of an 8.3% stake in its cinema chain Wanda Film for $306mn, which was said to be a move to raise cash for the group.
Wanda’s 6.875% 2023s are currently trading stable at 93.7 cents on the dollar.