Research Update: The Gap Inc. Ratings Affirmed On Improved Liquidity Position Following Successful Refinancing, Outlook Negative

San Francisco-based specialty apparel retailer The Gap Inc. has closed on its issuance of $2.25 billion of secured notes and a $1.868 billion asset-based lending (ABL) revolving credit facility (unrated). We revised our assessment of the company's liquidity to adequate from less than adequate. We are affirming our 'BB-' issuer credit rating and 'BB' issue-level ratings on the secured notes. The negative outlook reflects the potential that we will lower our rating if the coronavirus-related disruptions to the company's business persist longer than we currently anticipate. The revised liquidity assessment follows the company's successful closing on its $2.25 billion secured note offering and amended revolving credit facility. Gap converted the revolver from a $500 million cash-based facility to a $1.868

...- San Francisco-based specialty apparel retailer The Gap Inc. has closed on its issuance of $2.25 billion of secured notes and a $1.868 billion asset-based lending (ABL) revolving credit facility (unrated). - We revised our assessment of the company's liquidity to adequate from less than adequate. - We are affirming our '##-' issuer credit rating and '##' issue-level ratings on the secured notes. - The negative outlook reflects the potential that we will lower our rating if the coronavirus-related disruptions to the company's business persist longer than we currently anticipate....

Research Update