On July 20, 2006, Standard & Poor's Ratings Services affirmed its 'BBB-' corporate credit, 'BBB-' senior unsecured debt, and 'BB+' preferred stock ratings on Tanger Factory Outlet Centers Inc. and Tanger Properties L.P. (together, Tanger). The outlook is stable (see list). The ratings acknowledge the company's profitable factory outlet center portfolio, despite its small and concentrated size compared with its rated peer group. Tanger's portfolio quality and consistency have improved over the past three years, bolstered by the year-end 2003 acquisition of the nine-center Charter Oak portfolio, which is now wholly owned. This acquisition provides a larger base to support Tanger's pursuit of asset sales and development, which mitigates potential earnings dilution inherent in these activities. The company's above-average encumbrance
