Research Update: The Gap Inc. Rating Lowered To 'BB' From 'BB+' On Performance Challenges; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: The Gap Inc. Rating Lowered To 'BB' From 'BB+' On Performance Challenges; Outlook Negative

Research Update: The Gap Inc. Rating Lowered To 'BB' From 'BB+' On Performance Challenges; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: The Gap Inc. Rating Lowered To 'BB' From 'BB+' On Performance Challenges; Outlook Negative
Published Nov 25, 2019
7 pages (3136 words) — Published Nov 25, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

U.S.-based specialty apparel retailer Gap Inc. continues to experience sustained underperformance across its core brands as it prepares to execute a transformative business separation without a permanent CEO in place. We expect operating results will remain under pressure through the holiday season and into 2020 as the company wrestles with waning brand appeal and intense competitive pressures. We are lowering the issuer credit rating to 'BB' from 'BB+'. Concurrently, we are lowering the issue-level rating on the company's notes to 'BB' from 'BB+'. We are removing the ratings from CreditWatch. The outlook is negative, reflecting that we could lower the rating over the next 12 months based on the outcome of the company's planned spin-off or if the company's overall

  
Brief Excerpt:

...- U.S.-based specialty apparel retailer Gap Inc. continues to experience sustained underperformance across its core brands as it prepares to execute a transformative business separation without a permanent CEO in place. - We expect operating results will remain under pressure through the holiday season and into 2020 as the company wrestles with waning brand appeal and intense competitive pressures. - We are lowering the issuer credit rating to '##' from '##+'. - Concurrently, we are lowering the issue-level rating on the company's notes to '##' from '##+'. - We are removing the ratings from CreditWatch. The outlook is negative, reflecting that we could lower the rating over the next 12 months based on the outcome of the company's planned spin-off or if the company's overall performance fails to stabilize....

  
Report Type:

Research Update

Ticker
GPS
Issuer
The Gap Inc.
GICS
Apparel Retail (25504010)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: The Gap Inc. Rating Lowered To 'BB' From 'BB+' On Performance Challenges; Outlook Negative" Nov 25, 2019. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-The-Gap-Inc-Rating-Lowered-To-BB-From-BB-On-Performance-Challenges-Outlook-Negative-2347046>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: The Gap Inc. Rating Lowered To 'BB' From 'BB+' On Performance Challenges; Outlook Negative Nov 25, 2019. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-The-Gap-Inc-Rating-Lowered-To-BB-From-BB-On-Performance-Challenges-Outlook-Negative-2347046>
  
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