Bulletin: Shopping Center Owner Klepierre's Net Rental Income Is Likely To Decline 20%-25% In 2020

PARIS (S&P Global Ratings) June 2, 2020--S&P Global Ratings today said that the impact of COVID-19 on the business model and credit metrics of Klepierre S.A. (A-/Negative/A-2) could be more severe than we anticipated two months ago. Nevertheless, our revised base case remains commensurate with our 'A-' long-term issuer credit rating. The negative outlook is unchanged, reflecting the remaining uncertainty linked to the impact of COVID-19. Klepierre has been able to reopen most of its shopping centers since the end of April, including for nonessential activities. In particular, it has now been able to reopen all its shopping malls in France, including the large ones of more than 40,000 square meters in Paris region that were forced to remain closed

...June 2, 2020 PARIS (S&P Global Ratings) June 2, 2020--S&P Global Ratings today said that the impact of COVID-19 on the business model and credit metrics of Klepierre S.A. (A-/Negative/A-2) could be more severe than we anticipated two months ago. Nevertheless, our revised base case remains commensurate with our 'A-' long-term issuer credit rating. The negative outlook is unchanged, reflecting the remaining uncertainty linked to the impact of COVID-19. Klepierre has been able to reopen most of its shopping centers since the end of April, including for nonessential activities. In particular, it has now been able to reopen all its shopping malls in France, including the large ones of more than 40,000 square meters in Paris region that were forced to remain closed after the end of the lockdown period. As of today, about 93% (in portfolio value on a group share basis) of Klepierre's shopping centers are open. The portion still closed comprises mainly the shopping centers in Barcelona and Madrid...

Bulletin