The outlook on The Gap Inc. was revised to negative from stable on May 9, 2002. The 'BB+' long-term and 'B' short-term corporate credit ratings on the company were also affirmed at that time. The outlook revision was based on continuing negative sales trends in the company's Old Navy and Gap divisions. The company's same-store sales declined 17% in the first quarter, with Gap Domestic falling 20% and Old Navy down 18%. Standard & Poor's had expected The Gap's comparable-store sales to be negative in the first quarter, but it had not anticipated a sales decline of this magnitude. The ratings on the San Francisco, Calif.-based company reflect management's challenge to improve business fundamentals in its three brands in an
