This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Dalian Wanda Commercial Management Group (Wanda Commercial) and Wanda Commercial Properties (Hong Kong) (Wanda HK) were upgraded to CC from C by Fitch. This upgrade follows Wanda’s repayment of a coupon it missed last week on its 11% 2025s within the 10-day grace period. It had also met coupon repayments on its 7.25% 2024s that was due July 31. The company has added that it has sufficient funds to service subsequent coupon payments due in the short term. However, its available cash balance was reported to be roughly $3.9bn in end-March, of which $1.4bn is in its subsidiary Zhuhai Wanda which may not be available to repay Wanda Commercial’s debt. Furthermore, Wanda’s 7.25% bonds due January 2024 do not have a grace period for principal repayment. This, coupled with a roughly $530mn local bond outstanding that is puttable next month, have created some uncertainty over its near-term refinancing and/or repayment plan.
Wanda’s 7.25% 2024s have fallen by roughly 8.4 points since the start of the month and are currently trading at 52.6 cents on the dollar.