Solid asset quality and stable earnings profile Exposure to discretionary consumer spending and tenant-demand cycles Ongoing development exposure Conservative financial policies Large and lumpy potential capital-expenditure requirements for asset-redevelopment projects Secured funding platform The stable rating outlook on AMP Capital Shopping Centre Fund (ASCF) reflects our view that ASCF's financial flexibility and management strategies will continue to support the ratings at the current level. This would include maintaining gearing (debt-to-total assets) at the fund's targeted range of 15%-to-25% over the medium term. At the upper-end of this gearing range, we would expect that the fund will exhibit debt-to-EBITDA less than 4.5x, and a funds from operations (FFO)-to-debt ratio at about 15%. Accordingly, we assume that ASCF will manage its coverage
