Historically 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 solid operating performance and credit protection measures. PetSmart is the leading specialty retailer of products, services, and solutions for the lifetime needs of pets in the $40 billion pet products industry. PetSmart has made significant progress in improving its operations over the past three years. Sales trends have been positive, with comparable-store sales up 3.1% in
