NEW YORK, Oct. 22 (UPI) -- Fitch Ratings in New York Friday affirmed the ratings on the Gap Inc. in San Francisco, senior unsecured notes at BB plus.
Fitch also revised the Gap's rating outlook to positive from stable.
Approximately $2.3 billion of debt is affected.
Fitch said: "The positive outlook recognizes the company's success at improving its merchandise mix and store base efficiencies, which have led to a further strengthening of its operating performance and significant debt reduction.
"The rating considers Gap's strong brand name and consumer awareness, improved operating results, and significant cash flow generation. Also considered is the challenge of sustaining sales growth in the highly competitive specialty apparel retail sector."
Gap operates under the Gap, Banana Republic and Old Navy names and currently has more than 3,000 stores in the United States, United Kingdom, Canada, France and Japan.
