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 performance. 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 €5.4 billion at end-June 2004, Klépierre is the third-largest player in the French commercial property market and the second retail player in Europe. The group posted fairly robust 3.9% rental growth like for like during first-half 2004, in a mixed economic environment. Retail rents (accounting for 82% of the group total) were up 4.4%
