Consistent operating performance; and Good credit measures for the rating category. Competition from the significantly larger discounters; and An aggressive growth strategy. The ratings on Phoenix, Ariz.-based PetSmart Inc. reflect the risks associated with the highly fragmented pet supplies retail industry and the company's aggressive store growth. These factors are only partially mitigated by the company's established market position in the industry and its improving operating trends and credit measures. PetSmart has made significant progress in improving its operations over the past three years. Sales trends have been positive, as comparable-store sales grew 4.3% in the first half of 2006, following gains of 4.2% in all of 2005 and 6.3% in all of 2004. These trends are attributed to PetSmart's
