The ratings on Australian Prime Property Fund Retail (APPF Retail) reflect our view of the fund's very conservative financial policies which emanate from its strategy to be primarily equity-funded, resulting in relatively low gearing and a manageable refinancing task through capital-market cycles. The ratings on APPF Retail also reflect our view of the fund's "strong" business risk profile, which is underpinned by solid asset quality and our expectation of a retail shopping center portfolio that exhibits sound cash flow, despite a sluggish Australian retail trading environment. Partly offsetting these credit strengths are the risks associated with the fund's development activities and exposure to cyclical consumer and tenant demand. The value of the portfolio at March 31, 2012, was A$4.3 billion,
