Large player in the highly fragmented and competitive pet supply retail industry. Good production differentiation through private-label and service offerings. Further monetization of Chewy ownership provides path to reducing leverage. Status as an essential retailer drives stability in credit metrics through the COVID-19 pandemic. Highly leveraged capital structure, despite debt pay-down following Chewy Inc. IPO. Heightened e-commerce competition (Amazon.com and Chewy) and increased competition from mass channels (Walmart and Target) may erode competitive standing over time. Private equity sponsor ownership increases risk of leveraging events and aggressive financial policies. We anticipate minimal impact from COVID-19, given PetSmart Inc.'s status as an essential retailer. For the first quarter, PetSmart's sales (excluding Chewy Inc.) were roughly flat, and comparable sales grew by
