PARIS (Standard&Poor's) May 13, 2004--Standard&Poor's Ratings Services said today that its ratings and outlook on French property group Klépierre S.A. (BBB+/Stable/A-2) remain unchanged following the group's announcement that it will acquire €285 million worth of downtown shopping centers in Hungary, subject to regulatory approvals and due diligence. The unexpected, fully debt-financed transaction exhibits a somewhat aggressive expansion strategy and will moderately deteriorate Klépierre's credit measures. It will also generate risks related to moving into a new geographic area and into an emerging economy, as well as currency exposure. These factors are somewhat mitigated by the currently high occupancy rate of the acquired centers, which also include space let to the food anchors, and by Klépierre's still
