The ratings on France-based property group Klépierre S.A. primarily reflect Standard&Poor's Ratings Services' view of: the strong cash flow from the group's large and diversified portfolio, mostly comprising resilient retail assets; high barriers to entry in its main markets because of generally tight regulation; and a strong position and solid expertise in the ownership and management of shopping center galleries. We consider the strength and diversity of the real estate companies' asset portfolios to be the most relevant factors in assessing their business risk profile. These strengths are nevertheless tempered by our view of the group's financial risk profile as "significant"; the real estate industry's inherent cyclicality and capital intensity; and some exposure to currently weak economies, mainly
