S&P Global Ratings upgraded its long-term issuer credit ratings of Dalian Wanda Commercial Management Group Co. Ltd. to BB+ from BB.
The rating agency said Aug. 12 that it also upgraded the long-term issuer credit ratings of the company's unit, Wanda Commercial Properties (Hong Kong) Co. Ltd., to BB from BB-.
The outlook on the ratings of both companies is stable.
The rating agency said it upgraded Dalian Wanda Commercial Management Group's ratings as it expects the company, which transitioned to an investment property manager at the end of 2019, to continue to improve its cash flow sustainability and leverage stability.
The upgrade of Wanda Commercial Properties (Hong Kong)'s ratings followed the action on its parent, Ratings added.
The stable outlook reflects Ratings' view that Dalian Wanda Commercial Management Group's strong and stable rental income will support the rating. The rating agency said it expects rental income to grow faster after 2020 and that the company will maintain a disciplined expansion plan, including the execution of its asset-light malls, such that its financial leverage and liquidity remain stable.
Meanwhile, the rating agency said it expects the overall credit profile of the company's parent, Dalian Wanda Group Co.Ltd., to continue to be weaker than Dalian Wanda Commercial Management Group's and constrain the rating of the company over the next two to three years.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.