The rating on AMP Capital Shopping Centre Fund (ASCF) reflects our view of the Australia-based fund's "strong" business risk profile and "modest" financial risk profile. The fund's business profile is underpinned by its solid asset quality; favorable competitive position due to town-planning restrictions in Australia; and our expectation of stable rental income derived from a diversified retail portfolio that exhibits sound cash flow, despite a sluggish Australian retail trading environment. Also underpinning the rating are ASCF's conservative financial policies and our expectation that management will continue its prudent growth strategy. These credit strengths are partly offset by the risks associated with the fund's potential asset-redevelopment activity and exposure to cyclical consumer and tenant demand. The responsible entity of ASCF is
