Tanger Factory Outlet Centers (SKT) downgraded by Moody's.
Moody's Investors Service announced today that it has downgraded the senior unsecured debt rating of Tanger Properties L.P. to Baa2 from Baa1. The rating outlook remains negative according to Moody's.
The ratings downgrade follows SKT's release of earnings guidance for 2020, which includes a projected 7.5% decline (midpoint) in same-property net operating income due to increased vacancy from tenant bankruptcies. In its own release, Moody's cited "Tanger's high reliance on apparel retailers which make up a significant portion of its tenant roster" as a key ratings concern. The agency also noted the challenging environment for apparel retailers due to competition from online shopping, and likely pressure on SKT's re-leasing spreads as the company works to replace vacating tenants.
Tanger Factory Outlet Centers Inc. (SKT) specializes in the ownership, management and development of factory outlet center properties in the U.S. and Canada. As of December 31, 2019, Tanger had a total market capitalization of approximately $3.0 billion.