The rating on AMP Capital Shopping Centre Fund (ASCF), an unlisted Australian-based wholesale property fund, reflects our opinion of the fund's high-quality and well-diversified portfolio of shopping-center assets, and conservative financial policies. Common to other shopping-center owners, ASCF's retail assets require ongoing development activity. Although ASCF carefully manages the design, construction, and pre-leasing risks, we believe these lumpy cash requirements place stress on the fund's financial metrics. Also, in an uncertain economic environment, an exposure to cyclical consumer spending could dampen annual retail turnover at ASCF's centers. The responsible entity of ASCF is AMP Capital Investors Ltd., a wholly owned subsidiary of AMP Ltd., which is the ultimate controlling entity of Australian wealth management group AMP Group Holdings Ltd. (A/Stable/A-1).
