The ratings on France-based property group Klépierre S.A. primarily reflect Standard&Poor's Ratings Services' view of the strong cash flows coming from the group's large and diversified portfolio--which mostly comprises resilient retail assets--high barriers to entry in its main markets because of generally tight regulation, and a strong position and solid expertise in the ownership and management of shopping center galleries. We consider the strength and diversity of real estate companies' asset portfolios to be the most relevant factors in assessing their business risk profile. These strengths are tempered by our view of the group's financial risk profile as "significant", as defined by our criteria. These risks emanate from the real estate industry's inherent cyclicality and capital intensity, the
