Wall Street Watch

Approximately $180 Million of Securities Affected

New York, September 20, 2002 -- Moody's Investors Service has confirmed its Ba2 senior unsecured and Ba3 preferred stock ratings of Tanger Properties Limited Partnership and Tanger Factory Outlet Centers, Inc. respectively, and concurrently changed the rating outlook to positive, from stable. According to Moody's, this rating outlook change reflects the success of the REIT's strategy to improve the quality of its outlet center portfolio and of its tenant mix, and its ability to access diverse sources of capital including common equity and unsecured debt to fund acquisitions and development activities. In addition, the positive outlook reflects Moody's expectation that the REIT's coverages will be consistently improving, and that secured debt will fall over time.

Tanger has been successful in upgrading the quality of its tenant mix by, for example, including a greater share of upscale and fashion-oriented brand name manufacturers and retailers. This stronger tenant mix helps to boost traffic and sales at its centers by improving the shopping experience. The REIT also has pruned some of its underperforming properties. Redevelopments and expansions of core assets have also helped improve the productivity of the REIT's outlet center portfolio; as sales per square foot have risen from $264 at year-end 1999 to about $300 at the end of 2Q 2002. Fixed charge coverage statistics have benefited as well, and begun to improve in 2002 -- reversing a multi-year downward trend. Moody's expects Tanger's coverages to experience consistent, measurable improvement. In addition, portfolio enhancements, as well as sound operating skills, have helped Tanger achieve a greater degree of market leadership in some of its markets.

Moody's noted that the growth of Tanger's outlet center portfolio has been modest, while its asset base has remained highly concentrated: these factors constrain the potential for upward movement in the REIT's ratings. The size of the REIT's portfolio has increased slightly, from $594 million at year-end 1999 to about $664 million (as measured by book assets at cost including its recent acquisition) at the end of 2Q 2002. Tanger has become more active in pursuing growth opportunities, as evidenced by the recent opening of Phase I of its new outlet center in Myrtle Beach, South Carolina, and its just-completed equity-financed acquisition of an outlet center in metro Detroit. Moody's expects Tanger to be a successful and prudently financed participant in the ongoing consolidation in the outlet property segment.

Rating improvement will depend upon the REIT's ability to increase the size and market leadership of its outlet center portfolio and reduce single-asset concentration, while demonstrating consistent improvement in its coverage ratios, and reductions in its secured debt.

The following ratings were confirmed:

Tanger Properties Limited Partnership -- Senior unsecured at Ba2; senior unsecured shelf at (P)Ba2; subordinated debt shelf at (P)Ba3.

Tanger Factory Outlet Centers, Inc. -- Preferred stock at Ba3, preferred stock shelf (P)Ba3

Tanger Factory Outlet Centers, Inc.[NYSE: SKT], headquartered in Greensboro, North Carolina, USA, owns 30 outlet centers located in 21 states in the USA, encompassing approximately 5.8 million square feet. As of June 30, 2002 Tanger had assets of approximately $627 million (book at cost), and total shareholders' equity of approximately $71 million.

New York
Philip Kibel
Vice President - Senior Analyst
Real Estate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
John J. Kriz
Managing Director
Real Estate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Copyright 2002 by Moody's Investors Service
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