Standard & Poor's said today that The Gap Inc.'s (BB+/Negative/B) comparable-store sales decline of 6% in June has no immediate effect on the company's credit rating or outlook. All three of the company's brands recorded negative same store sales and a decline in traffic. Nevertheless, the company achieved better merchandising margins at its Old Navy and Banana Republic brands due to higher selling of goods at full-price and better margins on markdown items. Standard & Poor's expects the company will remain very challenged in the near term because consumers have responded poorly to The Gap's merchandising offerings for more than two years, and the company has had to mark down a significant amount of merchandise. The Gap's strong cash flow
