The ratings on Klépierre S.A. primarily reflect its leading positions as an owner and manager of shopping centers in Continental Europe, as well as its presence in the Paris prime office real estate market. The ratings also take into account the strong cash flow protection provided by the company's focus on shopping centres, which mitigates its more aggressive financial profile following the highly leveraged acquisition in January 2001 of French food retailer Carrefour S.A.'s European shopping malls. With a portfolio market value of about €4 billion following the acquisition of Carrefour's shopping malls, Klépierre is now the fourth-largest player in the French property market and ranks twelfth in Europe. Twenty percent of the company's assets--all retail property--are outside its French
