Fitch: Dalian Wanda on watch

Fitch Ratings said it placed Dalian Wanda Commercial Property Co. Ltd.'s BBB long-term foreign-currency issuer default rating, senior unsecured rating and the rating of its outstanding dollar-denominated senior notes on Rating Watch negative.

The negative watch is due to the lack of clarity surrounding Wanda's offshore liquidity, Fitch said.

The early termination provisions in some of Wanda's offshore loans were triggered by the downgrade of Wanda's ratings by other ratings agencies, the agency said.

Fitch said it believes Wanda has the option to negotiate with its lenders.

Wanda has some offshore cash reserves, but they may not be sufficient to address the $1.7 billion early repayment, the agency said.

Wanda is working to resolve its offshore liquidity needs, but limited progress had been made given the week-long public holiday in China through Oct. 6, Fitch said.

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