Tanger's outlet-center portfolio performance has exceeded our expectations; In our view, the company has strong cash flow coverage and moderate leverage; and The REIT has sufficient liquidity relative to capital needs. The company has greater exposure to lease expirations beginning in 2011; and Tanger's portfolio is small compared with its rated peers and has moderate asset concentration, with five centers contributing about 40% of the portfolio's net operating income (NOI). Tanger Factory Outlet Centers Inc.'s (Tanger) already strong credit metrics improved in the first quarter—an equity raise in 2009 deleveraged the balance sheet and bolstered coverage measures. Additionally, the company's outlet-center portfolio performed better than we anticipated despite the consumer strain due to the recent recession. Funds from operation (FFO)
