The ratings on France-based property company 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 well-established food retailers. Large portfolio--€7.9 billion at June 30, 2006--broadly diversified in terms of tenants, assets, formats, and geographic markets. Very high barriers to entry in its main markets, provided by generally tight regulations on new openings, as well as a not yet mature European market, where shopping centers consistently gain market share over more traditional forms of retail outlet. These business strengths are set to continue to back up Klépierre's cash flow generation and the market values of its retail assets. They are tempered by the group's aggressive debt-financed
