SAN FRANCISCO (S&P Global Ratings) Jan. 17, 2020--S&P Global Ratings today said that although we view The Gap Inc.'s (BB/Negative/--) scrapped spin-off of Old Navy as a positive development for the multi-brand specialty apparel retailer, it will not affect our ratings or outlook on the company at this time because it continues to face performance challenges. In our view, the cancelled separation alleviates significant execution risks and will limit its exposure to the substantial separation costs and dis-synergies associated with the transaction. We also believe the spin-off would have diminished The Gap's competitive position given the added scale, diversity, and profitability that Old Navy provides. Old Navy is one of the largest apparel brands in the U.S., generating approximately $8
