The ratings on France-based Klépierre S.A. primarily reflect the company's strong positions in property and in the management of large shopping centers anchored by food retailers, broad variety of assets and tenants, geographic diversity, and solid operating performances. These strengths translate into resilient cash flow streams, but are mitigated by the company's moderate debt leverage and somewhat aggressive expansion strategy. With a portfolio market value of €5.2 billion at year-end 2003, Klépierre is the third-largest player in the French property market and the second retail player in Europe. The group posted a relatively robust 4% rental growth at same scope during first-quarter 2004, in a mixed environment, with retail tenants' sales being modestly up in France (about 60% of retail
