NEW YORK (Standard&Poor's CreditWire) Jan. 18, 2001--Standard&Poor's today revised its outlook on PetsMart Inc. to negative from stable. At the same time, Standard&Poor's affirmed its double–'B'-minus corporate credit and senior secured bank loan ratings and its single–'B' subordinated debt rating on PetsMart. The outlook revision is based on Standard&Poor's belief that a slowing U.S. economy and higher inventory shrink and operating expenses in fiscal 2000 (ending January 2001) will result in EBITDA below fiscal 1999's level. In addition, PetsMart's increased investment in PetsMart.com in fiscal 2000 gives the company a greater percentage of the venture's annual profits and losses. Standard&Poor's does not expect PetsMart.com to be profitable until at least
