The ratings on Klépierre S.A. primarily reflect: The company's leading positions as an owner and manager of shopping centers in Continental Europe, as well as its longstanding presence in the Paris prime office real estate market; and The strong cash flow protection provided by the company's focus on shopping centers, which mitigates its more aggressive financial profile following the debt-funded acquisition in January 2001 of French food retailer Carrefour S.A.'s European shopping malls. With a portfolio market value of about €4.1 billion at year-end 2001, following the Carrefour acquisition, Klépierre is now the fourth-largest player in the French property market and ranks twelfth in Europe. Twenty-three percent of the company's retail assets are outside its French home market, mainly in
