The ratings on France-based Klépierre S.A. primarily reflect the company's strong positions and solid expertise in the ownership and management of shopping center galleries, most often anchored by food retailers; a large--€5.4 billion ($7.0 billion) at June 30, 2004--and extensively diverse portfolio by tenants, assets, and geographic markets; and relatively high barriers to entry provided by generally tight regulations on new openings. These business strengths are expected to continue to underpin resilient cash flow generation and market values of retail assets. They are tempered by the group's aggressive debt-financed growth policy that translates into large financing needs, substantial non-cancelable purchase commitments, and an increasing share of new greenfield developments. The group posted strong 12% sales growth in 2004, after a
