...NEW YORK (Standard & Poor's) Feb. 26, 2016--Standard & Poor's Ratings Services said today that its rating and outlook on The Gap Inc. (###-/Negative/--) are unaffected by the company's recent report of a 7% same-store sales decline in the fourth quarter. The company also reported a 2% same-store sales decline for fiscal 2015. We continue to expect 2016 operating performance will be weak at the company's Gap and Banana Republic brands in the near term. However, we think leverage will remain close to around 2x and the company will balance share repurchases with the potential for less free cash flow and maintain high cash balances. We believe the specialty apparel industry will remain difficult in 2016, given the heightened industry competition (especially from online, fast fashion, and off-pricing retailers), sustained highly promotional environment in the U.S., and the shifting trend in consumer spending toward health care and services. Moreover, we believe it will take several quarters...
