Gap Rating Action: New Rating for Proposed Debt Offering Rating Date: April 7 Moody's Investors Service assigned a Baa3 rating to Gap's ( GPS) proposed senior unsecured notes offering.
The proceeds of the proposed offering would be used for general corporate purposes including share repurchases. Gap's previous ratings were withdrawn in March 2009; this is a new rating. The rating outlook is stable.
"Moody's views Gap Inc.'s ability to grow earnings during the recession as a result of disciplined inventory management and an ongoing realignment of the store fleet as a favorable rating consideration," the rating agency said.