The ratings on The Gap Inc. were lowered and removed from CreditWatch on Feb. 14, 2002. The downgrade was based on a protracted record of disappointing sales and earnings. Moreover, Standard & Poor's believes that management faces significant challenges in turning around the performance of each of its brands, as the weak economy has exacerbated an already poor retail environment. Because of this, no significant improvement in credit measures is likely to occur in the near term. The Gap is a specialty retailer that operates stores selling casual apparel, personal care products, and other accessories. The company had about $2.6 billion of funded debt as of Nov. 3, 2001. The ratings on The Gap reflect management's challenge to improve business
