The ratings on France-based property group Klépierre S.A. primarily reflect Standard&Poor's Ratings Services' view of the group's large and diversified portfolio, mostly focused on resilient retail assets; high barriers to entry in its main markets, provided by generally tight regulation; and strong position and solid expertise in the ownership and management of shopping center galleries. 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 nevertheless tempered by the group's financial risk profile, which we consider to be intermediate; the real estate industry's inherent cyclicality and capital intensity; and some exposure to currently depressed economies, mainly Spain, Portugal, and Hungary. The quality of Klépierre's
