Standard & Poor's said today that The Gap Inc.'s (BBB+/Stable/A-2) report that comparable store sales dropped 25% in November and that it expects fourth quarter results to be worse than previously expected has no effect on the company's credit rating or outlook. Standard & Poor's had expected that the company would be very challenged in the near term as consumers have responded poorly to The Gap's merchandising offering for the past two years and the company has had to markdown a significant amount of merchandise. The Gap's strong cash flow generation still provides adequate credit support at the current rating level. Although Standard & Poor's continues to expect that the company will face difficulties through the first half of 2002,
