Bulletin: Shopping Center Owner Klepierre Could Take Longer To Recover Its EBITDA Than Expected

PARIS (S&P Global Ratings) July 30, 2021--S&P Global Ratings today said that Klepierre S.A.?s (BBB+/Stable/A-2) EBITDA in 2021 could be more subdued than we anticipated, due to prolonged shopping center closures in the first half of the year, and uncertainty on the pace of its recovery for the second half, with the Delta variant's spread. However, we continue to expect the company to post ratios compatible with the 'BBB+' rating by 2022. Klepierre reported a subdued €284.9 million EBITDA for first-half 2021, compared with €484.9 million in first-half 2020. Rent collection, at 70% as of July 21, has been highly affected by an average of 2.5 months' closure for the portfolio during the period, versus 1.6 months in the same

...July 30, 2021 PARIS (S&P Global Ratings) July 30, 2021--S&P Global Ratings today said that Klepierre S.A.'s (###+/Stable/A-2) EBITDA in 2021 could be more subdued than we anticipated, due to prolonged shopping center closures in the first half of the year, and uncertainty on the pace of its recovery for the second half, with the Delta variant's spread. However, we continue to expect the company to post ratios compatible with the '###+' rating by 2022. Klepierre reported a subdued 284.9 million EBITDA for first-half 2021, compared with 484.9 million in first-half 2020. Rent collection, at 70% as of July 21, has been highly affected by an average of 2.5 months' closure for the portfolio during the period, versus 1.6 months in the same period last year. In particular, the French portfolio (38.9% of Klepierre portfolio as of June 30) reported the lowest collection rate, at 58%. We understand this is because a large number of retailers suspended their rent payments until they receive the French...

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