NEW YORK (Standard&Poor's) Aug. 17, 2007--Standard&Poor's Ratings Services said today that pet-care retailer PetSmart Inc.'s (BB/Stable/--) announcement that it is repurchasing $225 million of its stock through an accelerated share repurchase program will not result in immediate changes to the ratings or outlook on the Phoenix, Ariz.-based company. The buyback is expected to be funded with cash and drawings under the company's newly expanded revolving credit facility. Added liquidity provided by the $350 million revolver, increased from $125 million, the company's cash balances in excess of $300 million at July 29, 2007, and the continued satisfactory performance of its operations provide comfort that the company can comfortably accommodate the moderate increase in leverage accompanying the buyback.
