S&P Global Ratings revised its outlook for Dalian Wanda Commercial Management Group Co. Ltd. to positive from stable, citing the speedy progression in the Chinese property company's business model transition.
The rating agency, which also affirmed Dalian Wanda Commercial's BB issuer credit rating, said the company is expected to complete its business model transition within the next 12 months. It added that the Chinese developer's rental income will continue to grow over the next two to three years as it maintains a disciplined expansion plan that will retain stability in its financial leverage and liquidity.
S&P noted that Dalian Wanda Commercial is on track to become a commercial property manager by 2020. It also expects the property company to have greater resilience, thanks to the continuous growth in its positive free operating cash flow generation.
In addition, Ratings revised its outlook for Dalian Wanda Commercial's Wanda Commercial Properties (Hong Kong) Co. Ltd. subsidiary to positive from stable and affirmed the unit's BB- issuer credit rating.
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