The retail environment remains under duress as the coronavirus outbreak has led to widespread store closures and a sharp contraction in consumer spending. We expect San Francisco-based The Gap Inc.'s operating results will be stressed over the near term as demand for apparel remains depressed in the current environment, resulting in cash burn and deteriorating credit metrics. We are lowering our ratings on Gap Inc. and its existing debt to 'BB-' from 'BB'. At the same time, we are assigning a 'BB' issue-level rating and '2' recovery rating to the company's proposed series of senior secured notes with varying maturities. The negative outlook reflects the potential for a lower rating if coronavirus-related disruptions to Gap Inc.'s business persist longer than
