Ratings agency Moody's Investor Services has taken the knife to the massive China developer Dalian Wanda's credit rating, cutting it to Ba1 amid concerns of the company's weakened liquidity position.

The agency said this was "due to inadequate offshore cash to meet the potential repayment of its offshore bank loans of around $1.7 billion – arising from potential non-compliance of certain maintenance requirements related to the company's existing borrowing obligations".

Dalian Wanda a fortnight ago began restructuring its business, which includes two $1 billion Australian apartment projects.

Dalian Wanda is one of the larger property developers and investors globally and has begun to restructure its business, which includes two $1 billion Australian apartment projects at Circular Quay and on the Gold Coast, plus the Hoyts cinema chain.

It has also pulled out of a London land deal worth $761 million.