San Francisco-based specialty apparel retailer The Gap Inc.'s operating performance continues to improve on rebounding consumer demand and successful sales- and margin-expanding initiatives. Stronger earnings, good free cash flow generation, and elevated cash balances have meaningfully strengthened Gap Inc.'s credit metrics. As a result, S&P Global Ratings is raising the issuer credit rating on Gap Inc. to 'BB' from 'BB-', and raising the rating on the company's senior secured notes to 'BB+' from 'BB'. The positive outlook reflects the potential for a higher rating if Gap Inc. can sustainably expand sales for its higher-growth, more-profitable brands and strengthen relevance at its mature brands while maintaining its existing conservative financial policy. Athleta, the company's fastest growing brand, is well situated in
