Fitch downgrades Wanda Commercial on offshore funding concerns
Wanda Commercial’s total debt was US$35.69 billion as of end-June, according to ratings agency S&P
Fitch Ratings has downgraded Dalian Wanda Commercial Property two notches, blaming its inability to access offshore funding channels.
Fitch also maintained its ‘Rating Watch Negative’ to reflect the continued lack of definitive funding channels to boost Wanda’s offshore liquidity.
Some of the unit’s onshore local-currency notes also have various creditor protection measures that could be triggered by non-payment events, said Fitch.
The rating on the commercial property unit has been lowered to BB+ from BBB, and the downgrade comes after Wanda Commercial failed to issue offshore senior notes by the end of 2017, despite it gaining approval for the US$1.5 billion issuance quota from the National Development and Reform Commission.
Wanda Commercial’s total debt was 279 billion yuan (US$35.69 billion) as of end-June, according to ratings agency S&P.
The two-notch downgrade reflects Wanda Commercial’s inability to access offshore funding channels to boost its offshore liquidity
Fitch said the company’s offshore liquidity risk is adding up, as it needs to apply to extend the quota.