S&P: Gap unchanged

Standard & Poor's said that its ratings and outlook on The Gap Inc. (BB+/stable) are not immediately affected by its weak fourth quarter sales, lower earnings guidance and rumors that it will go private.

The agency said it had lowered the ratings to speculative grade on Nov. 17 due to the company's protracted record of disappointing sales and declining profits over the past two years and had anticipated a weak fourth quarter.

In response to the poor fourth quarter and the challenges each of its concepts face, Gap's management has announced they are reviewing their strategies for Gap and Old Navy, the agency added.

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