Standard & Poor's said today that The Gap Inc.'s (BB+/Negative/B) comparable-store sales decline of 9% in May has no immediate effect on the company's credit rating or outlook. Standard & Poor's expects the company will remain very challenged in the near term, as 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 company's Gap domestic and international divisions continue to record steep decreases in same-store sales (down 15% and 20%, respectively). The Gap's Old Navy and Banana Republic divisions showed some improvement, as comparable-store sales were only down 4% and 1%, respectively. The Gap's strong cash flow generation still provides adequate
