Moody's: Gap on upgrade review

Moody's Investors Service said it placed the long-term debt ratings of Gap Inc. and its subsidiaries on review for possible upgrade and affirmed the company's SGL-1 rating.

Ratings placed on review include Gap Inc.'s senior implied of Ba2, senior unsecured intermediate term notes and convertible notes of Ba3, and senior unsecured notes of Ba3.

Moody's said the review for a possible upgrade is prompted by Gap's consistent improvement in top line sales growth, improved productivity of its store base which is generating increased profitability, and its stronger debt protection measures.

The company has delivered 16 consecutive months of positive comparable-store sales growth as well as six consecutive quarters of year over year EBIT margin improvement. In addition, the company recently announced its fourth quarter earnings per share guidance of 36 cents to 37 cents.

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