PetSmart Inc. Senior Unsecured Recovery Rating Revised To '6', Issue-Level Rating Lowered To 'CC' - S&P Global Ratings’ Credit Research

PetSmart Inc. Senior Unsecured Recovery Rating Revised To '6', Issue-Level Rating Lowered To 'CC'

PetSmart Inc. Senior Unsecured Recovery Rating Revised To '6', Issue-Level Rating Lowered To 'CC' - S&P Global Ratings’ Credit Research
PetSmart Inc. Senior Unsecured Recovery Rating Revised To '6', Issue-Level Rating Lowered To 'CC'
Published Jun 25, 2018
3 pages (1257 words) — Published Jun 25, 2018
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

NEW YORK (S&P Global Ratings) June 25, 2018--S&P Global Ratings today corrected its recovery rating on PetSmart Inc.'s $1.9 billion senior unsecured notes due 2023 and $650 million senior unsecured notes due 2025 by revising it to '6' from '5'. At the same time, we lowered the issue-level rating on the unsecured notes to 'CC' from 'CCC-'. We erroneously assigned the recovery rating on June 14, 2018, and reflected in our analysis that recovery prospects for unsecured noteholders had improved to greater than 10% as a result of the termination of liens on its Chewy Inc. subsidiary benefiting PetSmart's secured debt (linked to PetSmart's transfers of a portion of Chewy's equity interests to its parent and an unrestricted subsidiary). Because

  
Brief Excerpt:

...NEW YORK (S&P Global Ratings) June 25, 2018--S&P Global Ratings today corrected its recovery rating on PetSmart Inc.'s $1.9 billion senior unsecured notes due 2023 and $650 million senior unsecured notes due 2025 by revising it to '6' from '5'. At the same time, we lowered the issue-level rating on the unsecured notes to '##' from '###-'. We erroneously assigned the recovery rating on June 14, 2018, and reflected in our analysis that recovery prospects for unsecured noteholders had improved to greater than 10% as a result of the termination of liens on its Chewy Inc. subsidiary benefiting PetSmart's secured debt (linked to PetSmart's transfers of a portion of Chewy's equity interests to its parent and an unrestricted subsidiary). Because our analysis now contemplates that PetSmart's remaining equity interest in Chewy is still part of the collateral package for the term loan and secured notes, the improvement in unsecured recovery prospects is less than we had previously determined. All...

  
Report Type:

Ratings Action

Ticker
PETM
Issuer
PetSmart Inc.
GICS
Specialty Stores (25504040)
Sector
Global Issuers, Structured Finance
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "PetSmart Inc. Senior Unsecured Recovery Rating Revised To '6', Issue-Level Rating Lowered To 'CC'" Jun 25, 2018. Alacra Store. May 04, 2025. <http://www.alacrastore.com/s-and-p-credit-research/PetSmart-Inc-Senior-Unsecured-Recovery-Rating-Revised-To-6-Issue-Level-Rating-Lowered-To-CC-2062261>
  
APA:
S&P Global Ratings’ Credit Research. (). PetSmart Inc. Senior Unsecured Recovery Rating Revised To '6', Issue-Level Rating Lowered To 'CC' Jun 25, 2018. New York, NY: Alacra Store. Retrieved May 04, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/PetSmart-Inc-Senior-Unsecured-Recovery-Rating-Revised-To-6-Issue-Level-Rating-Lowered-To-CC-2062261>
  
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