Ratings snub raises questions about Wanda's financial health

The liquidity position of Dalian Wanda Commercial Property Co Ltd, the property developer owned by Chinese billionaire Wang Jianlin, has drawn market attention and raised questions about the developer's financial health after its credit ratings were cut to junk.

Global credit ratings agency Fitch Ratings downgraded Wanda Commercial by two notches to BB+, a junk rating, from BBB, citing the company's inability to access offshore funding channels to boost its offshore liquidity in a timely manner.

The move followed the steps of the other two major credit ratings agencies Standard & Poor's and Moody's Investors Service, which downgraded the Chinese developer last September to junk grade.