The ratings on France-based Klépierre S.A. primarily reflect the company's strong position and solid expertise in the ownership and management of shopping center galleries, most often anchored by food retailers; a large portfolio--€6.4 billion ($7.8 billion) at June 30, 2005--which is also extensively diverse in terms of 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. Net unadjusted financial debt was €2.8 billion
