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S&P revises Gap outlook to positive, 'BB+' rating affirmed

Standard & Poor's Ratings Services said that it revised its outlook on San Francisco-based specialty apparel retailer The Gap to positive from stable. At the same time, we affirmed our ratings, including the 'BB+' corporate credit rating on the company. The rating on Gap reflects Standard & Poor's Ratings Services' assessment of the company's "fair" business risk profile and "intermediate" financial risk profile. "Gap's business risk profile reflects our view of Gap's good market position in casual apparel, strong brand name, and geographic diversity," said Standard & Poor's credit analyst Helena Song. "We also believe Gap has demonstrated some improvement in product merchandising and regaining customer traffic in recent quarters, as same-store sales turned positive in the first three quarters of 2012."