The rating on San Francisco-based specialty apparel retailer The Gap Inc. (Gap) reflects Standard&Poor's Ratings Services' expectation that operating performance will remain generally stable in fiscal 2012, and in line with our assessment of the business risk profile as "fair." We also believe that the company will maintain shareholder initiatives in line with a moderate financial policy, and that credit metrics will remain characteristic of an "intermediate" financial risk profile Our ratings also reflect our view of Gap's "strong" liquidity, as it generates consistently good operating cash flow. Gap's business risk profile reflects the intensely competitive nature of apparel retailing, especially as it relates to management's ability to improve the business fundamentals of its three major brands in
