Wanda unit rating cut by S&P

Dalian Wanda Group Co's biggest unit had its credit rating cut to junk by S&P Global Ratings, raising the risk of higher borrowing costs overseas just as the Chinese conglomerate grapples with greater regulatory scrutiny.

S&P lowered its score on Dalian Wanda Commercial Properties Co to BB, two steps below investment grade, from BBB. The move comes after Wanda agreed in July to sell the bulk of its theme parks and hotel assets to Sunac China Holdings Ltd and Guangzhou R&F Properties Co. Wanda Commercial's dollar bonds due in 2024 dropped the most in a month.

"We expect Wanda Commercial's market position in its property development segment to weaken following the transition," S&P said. Wanda Commercial delisted from the Hong Kong stock exchange in September 2016, with the aim of eventually relisting on mainland. "The prospects of the company's Ashare listing are unclear, and information risks have heightened."