Units of Dalian Wanda have been put on watch for a possible credit rating downgrade following last week’s surprise mega-sale of $9.3bn in assets to rival developer Sunac.

Ratings agency Standard & Poor’s did not pull its punches. The agency said the sales lost by transferring the assets – hotels and tourism properties – would “more than offset the benefits of debt reduction” and that the “abrupt and large transaction has undermined the company’s stability and visibility.”

S&P described the sale as “unexpected” given that the company had recently added assets to its tourism portfolio. Wanda said the deal was designed to cut its leverage, but the ratings agency said it was “uncertain” whether that would happen “given that the company has not committed to a debt-reduction plan, and capital spending may still be significant.”