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Wanda Properties International Co. Ltd - Consent Solicitation - News (Fitch Downgrades)

Fitch Downgrades Wanda Commercial and Wanda HK to 'C' on Distressed Debt Exchange - Source:FitchRatings

22 NOVEMBER 2023


Full announcement, including disclaimers and restrictions is available at: FitchRatings


"RATING ACTION COMMENTARY


Fitch Downgrades Wanda Commercial and Wanda HK to 'C' on Distressed Debt Exchange

Wed 22 Nov, 2023 - 02:33 ET


Fitch Ratings - Hong Kong - 22 Nov 2023:


Fitch Ratings has downgraded Dalian Wanda Commercial Management Group Co., Ltd.'s (Wanda Commercial) and Wanda Commercial Properties (Hong Kong) Co. Limited's (Wanda HK) Long-Term Foreign-Currency Issuer Default Ratings to 'C' from 'CC'. Fitch has also downgraded the ratings on the US dollar notes guaranteed by Wanda HK and issued by Wanda Commercial's subsidiaries to 'C' from 'CC' with a Recovery Rating of 'RR4'.


The downgrade follows Wanda Commercial's announcement that it is soliciting consent from bondholders for proposed amendments to the terms of the USD600 million bond maturing on 29 January 2024 and to seek waivers of existing and potential events of default.


Fitch considers the proposed amendments as a distressed debt exchange (DDE) as per its criteria. If the proposed consent solicitation is successful, the IDR will be downgraded to 'RD' (Restricted Default). Fitch will then reassess Wanda Commercial's credit profile to determine an IDR that is consistent with the company's post-amendment capital structure and risk profile.


Fitch rates Wanda HK and Wanda Commercial based on the Parent and Subsidiary Linkage Rating Criteria. The companies' IDRs are the same, as we assess their Standalone Credit Profiles as being equal in a distressed scenario. Wanda HK is Wanda Commercial's fully owned sole offshore financing platform and overseas investment-holding company."


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Wanda Properties International Co. Limited - Consent Solicitation in respect of U.S. $600,000,000 7.25 per cent. Guaranteed Bonds Due 2024 - XS1023280271

21 NOVEMBER 2023


Full announcement, including disclaimers and restrictions is available at: Hong Kong Exchanges and Clearing Limited




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